CASES
Privatebancorp, Inc.
Class Period: Nov 2, 2007 to Oct 23, 2009
Lead Plaintiff Deadline: Dec 21, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against PrivateBancorp, Inc. (PVTB) ("PrivateBancorp" or the "Company") on behalf of all securities purchasers from November 2, 2007 through October 23, 2009, inclusive ("Class Period"), in the United States District Court for the Northern District of Illinois.
The complaint alleges that PrivateBancorp, certain of its senior executives and directors, the underwriters of PrivateBancorp's 2008 and 2009 Offerings, and its independent auditor during the Class Period violated the federal securities laws by engaging in improper behavior and by issuing materially false and misleading statements regarding PrivateBancorp's business and financial results that harmed the Company's investors. Specifically, the complaint alleges that the defendants misrepresented the Company's Strategic Growth and Transformation Plan (the "Growth Plan") which led PrivateBancorp to generate hundreds of millions of dollars in commercial and industrial loans that were high risk, and that the Company misrepresented the quality of its residential loan portfolio, which was suffering severe deterioration. As a result of defendants' false statements, PrivateBancorp's stock traded at artificially inflated prices throughout the Class Period. While PrivateBancorp's stock was artificially inflated, the Company conducted two public offerings, resulting in hundreds of millions of dollars in net proceeds to the Company.
Prior to the start of trading on October 26, 2009, PrivateBancorp shocked investors by reporting third quarter 2009 earnings results that fell far short of expectations. Despite having written off in excess of $100 million in bad loans in January 2009, the Company revealed that it held almost $400 million in nonperforming loans as of the third quarter 2009. PrivateBancorp further disclosed that its elevated levels of nonperforming loans were originated under the Growth Plan. Accordingly, the stock fell in response to the Company's October 26 disclosure.
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.