A settlement was reached with the remaining defendants in the lawsuit filed on behalf of certain investors of Colonial BancGroup Inc (NYSE: CNB) over alleged securities laws violations and a deadline to submit the settlement claim is upcoming on July 27, 2015 and NYSE: CNB investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/14/2015 -- A deadline is coming up on July 27, 2015 in the settlement reached in the securities class action lawsuit filed on behalf of investors who purchased shares of Colonial BancGroup Inc (NYSE: CNB) between April 18, 2007 and August 6, 2009.
Investors who purchased a significant amount of shares of Colonial BancGroup Inc (NYSE: CNB) between April 18, 2007 and August 6, 2009 have certain options and should contact the Shareholders Foundation by email at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The settlement proof of claim form or detailed settlement notice for the settlement in the Colonial BancGroup Inc (NYSE: CNB) Investor Securities Class Action Lawsuit can be downloaded at: http://shareholdersfoundation.com/case/colonial-bancgroup-inc-nyse-cnb-investor-securities-class-action-lawsuit-02092009
In order to submit a claim an investor has to submit the claim proof to the class action claim administrator in a timely manner. The deadline to submit the proof with the class administrator is July 27, 2015. The class action administrator for this case is Strategic Claims Services.
The lawsuit was originally filed in the U.S. District Court for the Middle District of Alabama on behalf of all persons or entities who purchased the securities of Colonial BancGroup Inc (NYSE: CNB) from December 2, 2008 through January 27, 2009 against Colonial BancGroup Inc and certain of its officers over alleged violations of securities laws.
According to the complaint the plaintiff alleges that Colonial BancGroup Inc and certain of its officers violated the federal securities laws by disseminating materially false and misleading statements contained in a press release and a related filing with the Securities and Exchange Commission concerning the Colonial BancGroup Inc's participation in the Troubled Asset Relief Program ("TARP"). During the trading day on December 2, 2008, Colonial BancGroup Inc issued a press release announcing that it had received TARP funding approval for an injection of $550 million. The press release also detailed the purported terms of the TARP funding with the United States Treasury Department including that the government would received preferred stock as well as warrants to purchase Colonial common stock. In response to that announcement Colonial BancGroup Inc's stock price surged over 50 % from its $2 per share close on December 01, 2008 to close at $3.08 per share on December 2, 2008.
According to the complaint, Colonial BancGroup Inc did not disclose that it would be required to raise additional outside capital of $300 million before it could receive the $550 million in TARP funding. The plaintiff alleges that Colonial BancGroup Inc disclosed that material fact after the markets closed on January 27, 2009 and as a result to that announcement, Colonial BancGroup Inc's stock (NYSE: CNB) price plunged from its close of $1.58 on January 27, 2009 to $0.85 the next trading -- a 46% drop -- on extraordinary volume exceeding 26 million shares.
Those who purchased shares of Colonial BancGroup Inc (NYSE: CNB) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com