Kahn Swick & Foti, LLC & Former Louisiana Attorney General File Suit Against Wilmington Trust: Remind Investors With Large Fi...
November 20 2010 - 6:04PM
Business Wire
Kahn Swick & Foti, LLC ("KSF") and KSF partner, Former
Attorney General of Louisiana, Charles C. Foti, Jr., announce the
commencement of the firm’s securities fraud class action lawsuit
against Wilmington Trust Corporation ("Wilmington Trust" or the
"Company") (NYSE: WL - News). The lawsuit was filed in the United
States District Court for the District of Delaware on behalf of
purchasers of the common stock of the Company between October 23,
2009 and November 1, 2010, inclusive (the "Class Period"). No class
has yet been certified in this action.
What You May Do
If you are a Wilmington Trust shareholder and would like to
discuss your legal rights and how this case might affect you and
your right to recover for your economic loss, you may, without
obligation or cost to you, e-mail or call KSF Managing Partner,
Lewis Kahn (lewis.kahn@ksfcounsel.com), toll free, 877-515-1850, or
via cell phone any time at 504-301-7900, or KSF Director of Client
Relations, Neil Rothstein, Esq. (neil.rothstein@ksfcounsel.com),
toll free at 877-694-9510, or via cell phone any time at
330-860-4092. If you wish to serve as a lead plaintiff in this
class action by overseeing lead counsel with the goal of obtaining
a fair and just resolution, you must request this position by
application to the Court by January 17, 2011. 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. KSF encourages both institutional
and individual purchasers of Wilmington Trust to contact the firm.
The ultimate resolution of any securities class action is
strengthened through the involvement of aggrieved shareholders and
lead plaintiffs who have large financial interests. KSF also
encourages anyone with information regarding Wilmington Trust’s
conduct during the period in question to contact the firm,
including whistleblowers, former employees, shareholders and
others.
About the Lawsuit
Wilmington Trust and certain of its Officers are charged with
making a series of materially false and misleading statements
related to the Company's business and operations in violation of
the Securities Exchange Act of 1934.
In particular, the Complaint alleges that on November 1, 2010,
investors were shocked to learn that the Company had agreed to be
acquired by M&T Bank Corp. for a fire sale price of $3.84 per
share in stock – a 46% discount from the Company’s prior day
closing price of $7.11 per share. That same day, defendants also
revealed that the Company reported an unexpectedly large
third-quarter loss of $365.3 million compared with a loss of $5.9
million in the year-earlier period, due primarily to bad real
estate construction loans in Delaware.
At that time, defendants also revealed that more losses were
foreseeable, attributed to the Company’s real estate portfolio.
Moreover, defendants also said that the Company had set aside
$281.5 million for loan losses, up 37% from the previous quarter,
and that nonperforming assets climbed more than three-quarters to
$988 million from the second quarter and represented 12 percent of
all loans.
The revelations that the Company had agreed to be acquired for
$3.84 per share in M&T stock, and the realization that
defendants had materially misrepresented its financial and
operational conditions, its controls and procedures and its results
of operations, belatedly revealed on November 1, 2010, caused
shares of Wilmington Trust to fall precipitously.
About Kahn Swick & Foti,
LLC
KSF, whose partners include the Former Louisiana Attorney
General Charles C. Foti, Jr., is a law firm focused on securities
class action and shareholder derivative litigation with offices in
New York and Louisiana. KSF's lawyers have significant experience
litigating complex securities class actions nationwide on behalf of
both institutional and individual shareholders. Recent cases
include In re Virgin Mobile USA IPO
Litigation, 2:07-cv-05619-SDW-MCA (D. N.J.), Co-Lead Counsel,
$19.5 Million Settlement Preliminarily Approved; In re
BigBand Networks, Inc Securities
Litigation, 3:07-CV-05101-SBA (C.D. Cal.), Co-Lead
Counsel, $11 million settlement; In re U.S. Auto
Parts Networks, Inc. Securities
Litigation, 2:07-cv-02030-GW-JC (C.D. Cal.), Lead
Counsel, $10 million settlement. KSF is also federally
court-appointed Co-Lead Counsel in THE shareholder derivative cases
against AIG and Bank of America (Merrill Lynch merger) emanating
from their recent multi-billion dollar economic declines.
To learn more about KSF, you may
visit www.ksfcounsel.com.
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