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Case ID: 5209 | Stocks | 11/03/2008
This securities class action was filed in the Southern District of New York on October, 2008.
The Complaint alleges that during the Class Period, the Company and the individual defendants falsely portrayed the Company as relatively immune from the effects of the global credit crisis and stated that the Company’s capital position remained strong and loan portfolio was solid. In actuality, the Company was practically insolvent at all relevant times and needed to sell assets at fire-sale prices and raise capital at extraordinarily high rates to remain viable. Moreover, the Company’s balance sheet was impaired by billions of dollars of poorly performing assets the Company acquired when it purchased ABN AMRO in October 2007. The magnitude of the Company’s severe liquidity crisis first became apparent on September 29, 2008, when the governments of three separate countries (Netherlands, Belgium, and Luxembourg), agreed to bail-out the Company so long as it would sell its troubled stake in ABN AMRO. Published reports indicated that Fortis’s sale of ABN AMRO would net considerably less than Fortis had paid for it just months ago. The deal would have given the three European nations a 49% stake in the Company. The emergency infusion was in the form of 11.2 billion euros ($16.9 billion). This unprecedented move, however, was not enough to stem Fortis’ continued decline. On Saturday, October 4, 2008, it was reported that the Dutch government took over Fortis’ operations for 16.8 billion euros ($23 billion) in a deal that came less than a week after the Netherlands, Belgium, and Luxembourg had agreed to invest 11.2 billion euros in Fortis. News that the famed financial giant was in ruins and required nationalization further punished Fortis’ already bruised stakeholders. On October 14, 2008, Fortis traded on the Brussels exchange at the lowest levels that it had ever seen since it was formed 18 years ago, after selling most of its operations to three governments and BNP Paribas SA. Fortis, which resumed trading after a six-day suspension, declined 78 percent to 1.22 euro, valuing the Company at 2.86 billion euros ($3.91 billion).
At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest Several class actions have been filed against construction and facilities services firm EMCOR Group, Inc. (NYSE:EME) and certain of its officers and directors by stockholders who purchased the company's common stock between April 9, 2003, and October 2, 2003. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. A class action has been filed in the District Court of New Jersey against MedQuist, Inc., a New Jersey based transcription service provider, (MEDQ.PK) and certain of its officers and directors by stockholders who purchased the company's common stock between April 23, 2002 and November 2, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. According to a law firm press release, on May 12, 2008 a class action lawsuit was against MGIC Investment Corporation. Several class actions have been filed against deep discount store operator 99 Cents Only Stores (NYSE:NDN) and certain of its officers and directors by stockholders who purchased the company's common stock between March 11, 2004, and June 10, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. According to a law firm press release, his action seeks to pursue remedies under the Securities Act of 1933 and the Securities Exchange Act of 1934. The parties have reached a tentative settlement in several consolidated class actions filed against electric power generation systems developer Plug Power, Inc. (Nasdaq:PLUG) and certain of its officers and directors by stockholders who purchased the company's common stock between February 14, 2000, and August 2, 2000. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. Persons eligible to take part in the settlement should contact attorneys for the class for more information. |
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