Regions Financial Corp.

Lead Plaintiff Deadline: Dec 7, 2009 + Deadline passed

Summary of Case:

A securities class action has been filed against Regions Financial Corp. (Ticker: RF-Z) ("Regions" or the "Company") on behalf of all persons who acquired the 8.875% Trust Preferred Securities of Regions Financing Capital Trust III (the "Securities") pursuant or traceable to a materially false and misleading registration statement and prospectus (the "Registration Statement") issued in connection with the April 2008 offering of the Securities (the "Offering").   

The complaint alleges that on April of 2008, Regions consummated the Offering pursuant to the false and misleading Registration Statement, selling 13.8 million shares of the Securities at $25 per share for proceeds of $345 million. The Registration Statement incorporated Regions' financial results for 2007. Then, on January 20, 2009, Regions issued a press release announcing a loss for the quarter and year ended December 31, 2008, including a loss for the quarter ended December 31, 2008 of $9.01 per diluted share, which was "largely driven by a $6 billion non-cash charge for impairment of goodwill." As a result of this disclosure, the price of the Securities dropped significantly.  

According to the complaint, the true facts which were omitted from the Registration Statement were: (a) the Company failed to properly record provisions for loan losses; (b) the Company failed to properly account for impaired assets; (c) the Company failed to properly account for goodwill; (d) the Company's internal controls were inadequate to prevent it from improperly recording provisions for loan losses, improperly accounting for impaired assets, and improperly accounting for goodwill; and (e) the Company was not as well capitalized as represented.

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.