CASES
National City Corp.
Class Period: Apr 30, 2007 to Jan 2, 2008
Lead Plaintiff Deadline: Mar 24, 2008 + Deadline passed
Summary of Case:
A securities class action has been filed against National City Corp. (NCC) ("National City" or the "Company") on behalf of all securities purchasers from April 30, 2007 through January 2, 2008 (Class Period) in the United States District Court for the Northern District of Ohio. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding National City's business and financial results. As a result of defendants' false statements, National City stock traded at artificially inflated prices during the Class Period, trading above $30 per share during much of the Class Period.
In October 2007, National City announced a big decline in earnings due to losses related to its mortgage business but assured the market about the dividend. Then, on January 2, 2008, the Company announced a 49% reduction in its quarterly dividend to $0.21 per share from $0.41 per share. On this news, National City's stock dropped from $16.46 per share to as low as $15.45 per share, closing at $15.59 per share on January 2, 2008 on volume of over 12.7 million shares.
The true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) the subprime mortgages on the Company's books were a much bigger risk to the Company's financial position than represented; (b) the Company was failing to adequately reserve for mortgage-related exposure, causing its balance sheet and financial results to be artificially inflated; and (c) defendants had no reasonable basis to make favorable predictions about the Company's future dividend payments and future financial performance given the problems in the business.
As a result of defendants' false statements and omissions, National City's stock traded at artificially inflated prices during 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.