This action was originally filed in the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, and removed to the U.S. District Court for the Southern District of Florida on September 26, 2008.
According to the original filing in state court, This is a securities class action brought on behalf of all current and former National City shareholders who acquired National City common stock pursuant to and/or traceable to National City's registration statement filed with the SEC in connection with the Fidelity Acquisition (the "Registration Statement"). The Registration Statement contains materially misleading statements and omissions in violation of the Securities Act of 1933 (the "Securities Act").
The Complaint alleges that the Registration Statement filed by National City and signed by each of the Defendants included untrue statements of material fact and omitted to state material facts necessary in order to make the statements made, in light of the circumstances in which they were made, not misleading. The Complaint alleges that Defendants failed to disclose, and made false and misleading statements about: the quality of National City's loan portfolio; the length of the period after which National City would declare loans non-performing; and the adequacy of
National City's loan loss reserves. The Complaint alleges that false or misleading statements in the Registration Statement distorted the financial condition of the Company at the time of the Fidelity Acquisition.
On December 1, 2008, by the Order from the Judicial Panel on Multidistrict Litigation, the case was transferred to the Northern District of Ohio re: MDL # 2003 for consolidated pretrial proceedings. The case is under docket 1:08-nc-70015.
On November 9, 2009, the defendants filed a motion to dismiss the complaint. A few days later the plaintiff filed a motion for appointment lead plaintiff and approval of lead plaintiff's selection of counsel. On February 24, 2010, Judge Solomon Oliver Jr. granted the plaintiff’s motion and appointed B. H. Reagan as lead plaintiff and approved the lead plaintiff’s selection of Berman DeValerio as lead counsel for the class.
Before any ruling on the defendants’ motion, the lead plaintiff filed a Stipulation and Agreement of Settlement on September 1, 2010. According to the Stipulation, the proposed settlement with the defendants is in the amount of $11 million. The settlement was preliminarily approved the same day. On December 13, 2010, the settlement was finally approved. The action is now dismissed with prejudice.