According to the press release dated November 18, 2010, the complaint alleges that, throughout the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. Specifically, defendants failed to disclose: (i) that the Company improperly delayed recording loan charge offs; (ii) that the Company’s reported income and asset quality were materially overstated due to defendants’ material understatement of Wilmington’s loan loss provisions, loan loss reserves and income tax expense; (iii) that as a result of the foregoing, the Company’s financial statements were materially false and misleading and not fairly presented in conformity with Generally Accepted Accounting Principles; (iv) that the Company’s internal and disclosure controls were materially deficient; (v) that the Company was engaged in unsafe and/or unsound banking practices; and (vi) that based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth.
On November 1, 2010, Wilmington announced it lost $365.3 million in the third quarter of 2010, the quarter ended September 30, 2010, primarily as a result of a $281.5 million charge to “reflect the increased risk in our loan portfolio” and a $100.7 million income tax charge resulting from the Company’s continued losses and the uncertainty about the reliability of Wilmington’s deferred tax asset due to the poor credit quality of it loan portfolio.
On March 07, 2011, an Order Appointing The Institutional Investor Group as Lead Plaintiff, Approving Its Selection of Co-Lead Counsel, and Consolidating All Related Actions was issued by the Court.
On March 29, 2012, the Court issued an Order granting, without prejudice, Defendants' motions to dismiss plaintiffs' consolidated complaint. Plaintiffs were granted leave to file an amended complaint. On May 10, 2012, plaintiffs filed a second amended consolidated complaint.
On January 9, 2013, the plaintiffs filed a third amended consolidated complaint.
On June 13, 2013, the plaintiffs filed a fourth amended consolidated complaint.
On March 20, 2014, the Court issued an Order ruling on the Motions to Dismiss of multiple Defendants.