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Case Status:    SETTLED
On or around 08/11/2015 (Ongoing date of last review)

Filing Date: October 20, 2010

According to a press release dated October 21, 2010, the complaint alleges that during the Class Period defendants issued false and misleading statements regarding the Company’s operations and financial performance. Specifically, defendants misled shareholders by failing to properly account for the goodwill carried on Regions’ balance sheet, causing the Company’s financial results to be materially false and misleading. As a result of defendants’ false and misleading statements, Regions stock traded at artificially inflated prices throughout the Class Period.

The true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) that the more than the $6 billion in “goodwill” Regions carried on its books since the November 4, 2006 acquisition of AmSouth Corporation (“AmSouth”) was grossly impaired and overstated; (b) that subsequent to the AmSouth acquisition Regions had failed to properly test for and write down impaired goodwill, causing the Company’s balance sheet and reported financial results to be artificially inflated; and (c) that Regions was operating with woefully deficient internal controls, resulting in inaccurate and misleading financial disclosures in violation of Generally Accepted Accounting Principles, including improperly reporting its goodwill.

On February 25, 2009, defendants acknowledged in the Company’s Form 2008 Form 10-K filing with the SEC that the deteriorating real estate market was the cause of these huge charges (especially in Florida and Georgia) and that it had been a problem for the Company since at least 2007.

As a result of defendants’ false and misleading statements, Regions stock traded at inflated levels during the Class Period. However, the Company’s share price declined significantly as the truth leaked into the market at the end of the Class Period.

On November 22, 2010, the defendants filed a motion to dismiss the complaint. On January 20, 2011, Judge Inge P Johnson granted the motion to appoint District 9, I.A. of M.&A.W. Pension Trust and Employees’ Retirement System of the Virgin Islands as lead plaintiffs, and approved Robbins Geller Rudman & Dowd LLP as lead counsel and Ward & Wilson, LLC and Roger Bedford & Associates, P.C., as co-liaison counsel. On February 22, 2011, the lead plaintiffs filed an Amended Complaint. On March 8, 2011, Moore & Trousdale, P.C., was added as co-liaison counsel. On April 8, 2011, the defendants filed a motion to dismiss the Amended Complaint. The motion to dismiss was denied on June 7, 2011.

On September 7, 2011, the Court issued an Order denying the Defendant's motion for Reconsideration and Interlocutory Appeal.

On June 14, 2012, the Court granted the plaintiffs’ motion for class certification. In a separate order issued the same day, the defendants’ motion to exclude the opinions and testimony of Bjorn I. Steinholt was found to be moot, in relation to class certification, without prejudice to defendants’ right to refile such a motion.

On May 18, 2015, the parties entered into a Stipulation of Settlement.

COMPANY INFORMATION:

Sector: Financial
Industry: Regional Banks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: RF
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Alabama
DOCKET #: 10-CV-02847
JUDGE: Hon. Inge P Johnson
DATE FILED: 10/20/2010
CLASS PERIOD START: 02/27/2008
CLASS PERIOD END: 01/19/2009
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 · info@csgrr.com/
  2. Roger Bedford & Associates, P.C.
    2100 Southbridge Parkway, Suite 580, Roger Bedford & Associates, P.C., AL 35209
    205/871-5404 205/871-5758 ·
  3. Ward & Wilson
    2100 Southbridge Parkway, Suite 580, Ward & Wilson, AL 35209
    205.871.5404 205/871-5758 ·
No Document Title Filing Date
COURT: N.D. Alabama
DOCKET #: 10-CV-02847
JUDGE: Hon. Inge P Johnson
DATE FILED: 02/22/2011
CLASS PERIOD START: 02/27/2008
CLASS PERIOD END: 01/19/2009
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date
No Document Title Filing Date