Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Wilmington Trust Corporation
November 18 2010 - 3:30PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/wilmington) today announced that a
class action has been commenced on behalf of an institutional
investor in the United States District Court for the District of
Delaware on behalf of purchasers of the common stock of Wilmington
Trust Corporation (“Wilmington” or the “Company”) (NYSE: WL)
between October 23, 2009 and November 1, 2010, inclusive (the
“Class Period”), seeking to pursue remedies under the Securities
Exchange Act of 1934 (the “Exchange Act”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Samuel H. Rudman
or David A. Rosenfeld of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member
of this Class, you can view a copy of the complaint as filed or
join this class action online at
http://www.rgrdlaw.com/cases/wilmington. Any member of the putative
class may move the Court to serve as lead plaintiff through counsel
of their choice, or may choose to do nothing and remain an absent
class member.
The complaint charges Wilmington and certain of its officers and
executives with violations of the Exchange Act. Wilmington is a
financial holding company that is incorporated in the State of
Delaware. The Company describes itself as a relationship management
company that helps clients increase and preserve their wealth
through a variety of deposit-taking, lending, fiduciary, trustee,
financial planning, investment consulting, asset management,
insurance, broker-dealer, and administrative services.
The complaint alleges that, throughout the Class Period,
defendants issued materially false and misleading statements
regarding the Company’s business and financial results.
Specifically, defendants failed to disclose: (i) that the Company
improperly delayed recording loan charge offs; (ii) that the
Company’s reported income and asset quality were materially
overstated due to defendants’ material understatement of
Wilmington’s loan loss provisions, loan loss reserves and income
tax expense; (iii) that as a result of the foregoing, the Company’s
financial statements were materially false and misleading and not
fairly presented in conformity with Generally Accepted Accounting
Principles; (iv) that the Company’s internal and disclosure
controls were materially deficient; (v) that the Company was
engaged in unsafe and/or unsound banking practices; and (vi) that
based on the foregoing, defendants lacked a reasonable basis for
their positive statements about the Company, its prospects and
growth.
On November 1, 2010, Wilmington announced it lost $365.3 million
in the third quarter of 2010, the quarter ended September 30, 2010,
primarily as a result of a $281.5 million charge to “reflect the
increased risk in our loan portfolio” and a $100.7 million income
tax charge resulting from the Company’s continued losses and the
uncertainty about the reliability of Wilmington’s deferred tax
asset due to the poor credit quality of it loan portfolio.
Plaintiff seeks to recover damages on behalf of all purchasers
of Wilmington common stock during the Class Period (the “Class”).
The plaintiff is represented by Robbins Geller, which has expertise
in prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San
Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and
Atlanta, is active in major cases pending in federal and state
courts throughout the United States and has taken a leading role in
many important actions on behalf of defrauded investors, consumers,
and companies, as well as victims of human rights violations. The
Robbins Geller Web site (http://www.rgrdlaw.com) has more
information about the firm.
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