According to the complaint filed May 4, 2009, the Company pursuant and/or traceable to a false and misleading registration statement and prospectus issued in connection with the Company's February 2008 initial public offering of the Securities.
The true facts which were omitted from the Registration Statement were:
(a) The Company's assets, including loans and mortgage-related securities were impaired to a greater extent than the Company had disclosed; (b) Defendants failed to properly record losses for impaired assets; (c) The Company's internal controls were inadequate to prevent the Company from improperly reporting its impaired assets; and (d) The Company's capital base was not as well capitalized as it had represented.
On June 8, 2009, the plaintiff filed a notice voluntarily dismissing the claims without prejudice against PricewaterhouseCoopers LLP. On August 27, 2009, Judge William S. Duffey, Jr. signed the order consolidating several related class actions into the first filed case, Belmont Holdings Corp. v. SunTrust Banks, Inc., et al, Civil Action No. 1:09-cv-1185-WSD.
On September 29, 2009, Judge William S. Duffey, Jr., signed the Opinion ad Order granting the Belmont Holdings Corp.’s Motion for Consolidation, Appointment as Lead Plaintiff and Approval of its Selection of Lead Counsel. Plaintiff Belmont Holdings Corp. is appointed lead plaintiff and that Coughlin Stoia Geller Rudman & Robbins LLP are approved as lead counsel. On November 30, 2009, the lead plaintiff filed a Consolidated Complaint. On January 29, 2010, the defendants filed several motions to dismiss the Consolidated Complaint.
On September 10, 2010, Judge William S. Duffey granted the motions to dismiss and gave plaintiffs leave to file an amended complaint on or before October 8, 2010. The plaintiffs filed their First Amended Consolidated Complaint on October 8th. The defendants responded by filing motions to dismiss on March 21, 2011.
On September 7, 2011, Judge William S. Duffey, Jr., denied certain motions to dismiss and granted in part and denied in part Defendant Ernst & Young LLP's motion to dismiss. It was granted to the extent Plaintiff makes any claims under GAAP or GAAS, or for inadequate internal controls, that are related to representatives other than those concerning the ALLL, loan loses, and Provision. The Motion was denied otherwise. On September 28, 2011, defendants filed motions for reconsideration of the above order.
On August 28, 2012, the Court issued an Order granting the defendants' motions for reconsideration. Plaintiff's claims against all defendants were dismissed.