Case Page

 

Case Status:    DISMISSED    
On or around 11/20/2013 (Other)

Filing Date: September 23, 2011

According to a press release dated September 23, 2011, the Defendants violated federal securities laws in connection with allegedly false and misleading statements.

The complaint alleges that during the Class Period, Defendants misled investors by failing to disclose that the Company potentially owes a third party company over $10 billion. Specifically, Defendants’ statements during the Class Period were materially false and misleading for failing to disclose that between 2005 and 2007, the Company and two companies it acquired and their subsidiaries sold the third party over $28 billion in residential mortgage-backed securities, and that as a result of these sales, the third party company suffered losses in excess of $10 billion and the Company was potentially subject to suit for those losses. Throughout the Class Period, Defendants repeatedly informed investors about the claims of other entities for their RMBS losses but not about the massive losses suffered by the third party.

Subsequently, on August 8, 2011, the third party filed suit against the Defendant company in New York state court seeking to recover the losses it had suffered from the RMBS that the Company, and the companies it acquired, had sold it between 2005 and 2007. As a result, the price of the Company’s common stock dropped from a closing price of $8.17 per share on August 5, 2011 to $6.51 per share on August 8, 2011, a decline of more than 20% in one trading day.

On June 18, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel.

On July 20, 2012, the plaintiffs filed their amended complaint. On September 26, 2012, the plaintiffs filed a notice of election to file a second amended complaint, which they filed on October 26, 2012.

On November 1, 2013, the Court issued an Order granting defendants' motion to dismiss. The Clerk was directed to enter judgment dismissing this action and closing the case. On November 20th, the plaintiffs filed a Notice appealing the above Order.

COMPANY INFORMATION:

Sector: Financial
Industry: Money Center Banks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: BAC2
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: S.D. New York
DOCKET #: 11-CV-06678
JUDGE:
DATE FILED: 09/23/2011
CLASS PERIOD START: 02/25/2011
CLASS PERIOD END: 08/05/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Law Office of Marc S. Henzel

    ·
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 11-CV-06678
JUDGE:
DATE FILED: 10/26/2012
CLASS PERIOD START: 02/25/2011
CLASS PERIOD END: 08/08/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Hagens Berman Sobol Shapiro LLP (New York)
    One Penn Plaza, 36th Floor, Hagens Berman Sobol Shapiro LLP (New York), NY 01119
    212.752.5455 212.752.5455 · info@hbsslaw.com
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
  3. Spector Roseman Kodroff & Willis, P.C. (Philadelphia)
    1818 Market Street, Suite 2500, Spector Roseman Kodroff & Willis, P.C. (Philadelphia), PA 19103
    215.496.0300 215.496.6611 ·
No Document Title Filing Date