CASES
Guaranty Financial Group, Inc.
Class Period: Dec 12, 2007 to Aug 24, 2009
Lead Plaintiff Deadline: Jan 10, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against Guaranty Financial Group, Inc. ("GFG") on behalf of the purchasers of common stock of GFG between December 12, 2007 and August 24, 2009. This case has been filed in the USDC - Texas (Northern).
The Complaint alleges that defendants failed to disclose the following adverse facts, among others: (i) GFG's financial results were artificially inflated due to Guaranty Bank's failure to state certain of its assets at their true fair value; (ii) GFG improperly delayed the recognition of its impaired assets in order to inflate its reported income and regulatory capital; (iii) GFG misrepresented its true financial condition, liquidity, capital and ability to repay its debt obligations; (iv) GFG would be unable to satisfy its future debt obligations as they matured; (v) GFG's internal and disclosure controls were materially deficient; (vi) GFG through Guaranty Bank, was engaged in unsafe and/or unsound banking practices; and (vii) as a result of the foregoing, GFG's financial statements were not fairly presented in conformity with generally accepted accounting principles and were materially false and misleading.
On August 24, 2009, GFG filed a Form 8-K with the SEC disclosing that Guaranty Bank had been closed by the Office of Thrift Supervision and that the Federal Deposit Insurance Corporation had been appointed as receiver to Guaranty Bank. GFG also disclosed that the New York Stock Exchange had suspended trading in GFG common stock.
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.