Stockholders v Popular, Inc.
Stockholders File Lawsuit Against Popular, Inc.
According to a press release dated May 14, 2009, the complaint charges Popular and certain of its officers with violations of the Exchange Act. Popular, through its subsidiaries, offers a range of retail and commercial banking products and services in Puerto Rico and the United States.
The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Companys true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose the following adverse facts, among others: (i) that the Companys deferred tax assets related to its U.S. operations were materially overstated; (ii) that the Company was experiencing increasing loan losses in Puerto Rico and the U.S. construction sectors; (iii) that the quality of the Companys remaining mortgage-related loans in its U.S. mainland portfolios and other assets were deteriorating and were materially overstated; (iv) that the Company was experiencing a higher percentage of non-performing loans; (v) that the Companys 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, Popular announced its financial results for the fourth quarter and year end of 2008, the period ended December 31, 2008. For the quarter, the Company reported a net loss of $702.9 million, citing to a higher provision for loan losses, among other things. In response to this announcement, shares of the Companys common stock fell $2.52 per share, or 50%, to close at $ 2.46 per share, on heavy trading volume.
If you bought Popular, Inc. securities and would like to obtain information about the Popular, Inc. lawsuit, then you are invited to call Kahn Swick Foti, LLC toll free at (866) 467-1400 to speak with an attorney or visit www.ksfcounsel.com.
