According to a press release dated November 11, 2011, the complaint charges the Company and certain of its directors and directors of a now bankrupt affiliated company with violations of the Securities Exchange Act of 1934.
Prior to the beginning of the Class Period, the Company conducted its financial services business through a wholly-owned subsidiary (“Subsidiary”)
The complaint alleges that defendants failed to disclose the following adverse facts, among others: (i) the Subsidiary’s financial results were artificially inflated due to its failure to state certain of its assets at their true fair value; (ii) the Subsidiary improperly delayed the recognition of its impaired assets in order to inflate its reported income and regulatory capital; (iii) the Subsidiary misrepresented its true financial condition, liquidity, capital and ability to repay its debt obligations; (iv) it would be unable to satisfy its future debt obligations as they matured; (v) the Subsidiary’s internal and disclosure controls were materially deficient; (vi) the Subsidiary was engaged in unsafe and/or unsound banking practices; and (vii) as a result of the foregoing, the Subsidiary’s financial statements were not fairly presented in conformity with generally accepted accounting principles and were materially false and misleading.
On August 24, 2009, the Subsidiary filed a Form 8-K with the SEC disclosing that is bank had been closed by the Office of Thrift Supervision and that the Federal Deposit Insurance Corporation had been appointed as receiver. The Subsidiary also disclosed that the New York Stock Exchange had suspended trading in its common stock.
On February 6, 2012 the Court issued an Order appointing Bruce Owens as lead plaintiff and the law firm of Robbins Geller Rudman & Dowd LLP as lead counsel.
On April 19, 2012 the plaintiffs filed an Amended Complaint.
On March 28, 2013, the Court issued an Order granting the defendants' motions to dismiss without prejudice. Plaintiffs were given leave to file an amended complaint. On April 26, the plaintiffs filed their amended complaint.
On July 30, 2013, the Court issued an Order dismissing this case with prejudice. A Final Judgment was entered on the same date.
On August 27, the lead plaintiff filed a Notice appealing the Final Judgment of July 30.