CASES
Regions Financial Corporation (2010)
Class Period: Feb 27, 2008 to Jan 19, 2009
Lead Plaintiff Deadline: Dec 20, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Regions Financial Corporation (2010) (RF) ("Regions" or the "Company") on behalf of all securities purchasers from February 27, 2008 through January 19, 2009, inclusive ("Class Period"), in the United States District Court for the Northern District of Alabama.
The complaint alleges that during the Class Period, defendants issued false and misleading statements regarding Regions' operations and financial performance. Specifically, defendants misled shareholders by failing to properly account for the goodwill carried on Regions' balance sheet, causing the Company's financial results to be materially false and misleading. As a result of defendants' false and misleading statements, Regions stock traded at artificially inflated prices throughout the Class Period.
The true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) that the more than the $6 billion in "goodwill" Regions carried on its books since the November 4, 2006 acquisition of AmSouth Corporation ("AmSouth") was grossly impaired and overstated; (b) that subsequent to the AmSouth acquisition Regions had failed to properly test for and write down impaired goodwill, causing the Company's balance sheet and reported financial results to be artificially inflated; and (c) that Regions was operating with woefully deficient internal controls, resulting in inaccurate and misleading financial disclosures in violation of Generally Accepted Accounting Principles, including improperly reporting its goodwill.
On February 25, 2009, defendants acknowledged in the Company's Form 2008 Form 10-K filing with the SEC that the deteriorating real estate market was the cause of these huge charges (especially in Florida and Georgia) and that it had been a problem for the Company since at least 2007.
As a result of defendants' false and misleading statements, Regions stock traded at inflated levels during the Class Period. However, the Company's share price declined significantly as the truth leaked into the market at the end of the Class Period.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.