Whatley Drake & Kallas, LLC Announces Filing of Class Action Lawsuit Against Popular, Inc.
June 26 2009 - 6:58PM
PR Newswire (US)
NEW YORK, June 26 /PRNewswire/ -- The law firm of Whatley Drake
& Kallas, LLC today announced that a class action lawsuit was
filed in the United States District Court for the District of
Puerto Rico on behalf of purchasers of securities of Popular, Inc.
(NASDAQ:BPOPNASDAQ:BPOPP) ("Popular" or "the Company") between
January 23, 2008 and January 22, 2009, inclusive (the "Class
Period"). The Complaint charges Popular and certain of its officers
and directors with violations of the federal securities laws.
Popular is a financial services provider with operations in Puerto
Rico, the United States, the Caribbean, and Latin America. The
Complaint alleges that defendants issued materially false and
misleading statements, including a materially false and misleading
registration statement and prospectus in connection with Popular's
May 28, 2008 offering of Series B preferred shares, that
misrepresented and failed to disclose that: (i) the Company's
deferred tax assets relating to its U.S. operations were materially
overstated; (ii) the Company was experiencing increasing loan
losses in Puerto Rico and the U.S. construction sectors; (iii) the
quality of the Company's remaining mortgage-related loans in its
U.S. mainland portfolios and other assets were deteriorating and
were materially overstated; (iv) the Company was experiencing a
higher percentage of non-performing loans; (v) the Company's new
loan originations were declining; and (vi) as a result of the
foregoing, the Company would soon be facing liquidity concerns and
would be forced to cut or eliminate paying a dividend to
shareholders. On January 22, 2009, the Company announced its
financial results for the fourth quarter and year ended December
31, 2008. For the quarter, the Company reported a substantial net
loss of $702.9 million due to, among other things, higher
provisions for loan losses in the construction sectors in Puerto
Rico and the U.S. and mortgage-related loans in the Company's U.S.
mainland portfolios, and the recording of a substantial valuation
allowance for deferred tax assets related to the Company's U.S.
operations. If you are a member of the class described above and
wish to serve as lead plaintiff, you must move the Court no later
than July 13, 2009. Any member of the class may move the Court to
serve as lead plaintiff through counsel of their choice. Your
ability to share in any recovery is not, however, affected by the
decision whether or not to serve as a lead plaintiff. If you wish
to discuss this action or have any questions concerning this notice
or your rights or interests, please contact Adam Plant of Whatley
Drake & Kallas, LLC at 1-888-295-1923, or via e-mail at .
Additional counsel in this case include the Wood Law Firm of
Birmingham, Ala., and the Quetglas Law Offices of Puerto Rico.
About the Firm: Whatley, Drake & Kallas, LLC, a thirty-five
lawyer firm with offices in Birmingham, New York City, and Boston,
was formed in 1998 as a successor to the firm of Cooper, Mitch,
Crawford, Kuykendall & Whatley. Since that time, the firm has
concentrated in complex class action and derivative litigation,
including securities, ERISA, 401k, healthcare, insurance,
antitrust, mass tort and consumer litigation. The firm also remains
devoted to its longstanding representation of unions and workers
throughout the Southeast United States. The firm represents several
Taft-Hartley plans as counsel for the plans, providing advice on a
myriad of compliance and litigation issues confronting such plans.
CONTACT: Joe R. Whatley Jr. (205/328-9576) DATASOURCE: Whatley
Drake & Kallas, LLC CONTACT: Joe R. Whatley Jr.,
+1-205-328-9576
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