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Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Regions Financial Corporation

^{Published on 2010-10-21 12:10:33 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/regions/ ]) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Northern District of Alabama on behalf of purchasers of Regions Financial Corporation (aRegionsa) (NYSE:RF) common stock during the period between February 27, 2008 and January 19, 2009 (the aClass Perioda).

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 plaintiffa™s counsel, Darren Robbins 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/regions/ ]. 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 Regions and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Regions provides consumer and commercial banking, trust, securities brokerage, mortgage and insurance products and services.

The complaint alleges that during the Class Period defendants issued false and misleading statements regarding the Companya™s operations and financial performance. Specifically, defendants misled shareholders by failing to properly account for the goodwill carried on Regionsa™ balance sheet, causing the Companya™s financial results to be materially false and misleading. As a result of defendantsa™ false and misleading statements, Regions stock traded at artificially inflated prices throughout the Class Period.

The true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) that the more than the $6 billion in agoodwilla Regions carried on its books since the November 4, 2006 acquisition of AmSouth Corporation (aAmSoutha) was grossly impaired and overstated; (b) that subsequent to the AmSouth acquisition Regions had failed to properly test for and write down impaired goodwill, causing the Companya™s balance sheet and reported financial results to be artificially inflated; and (c) that Regions was operating with woefully deficient internal controls, resulting in inaccurate and misleading financial disclosures in violation of Generally Accepted Accounting Principles, including improperly reporting its goodwill.

On February 25, 2009, defendants acknowledged in the Companya™s Form 2008 Form 10-K filing with the SEC that the deteriorating real estate market was the cause of these huge charges (especially in Florida and Georgia) and that it had been a problem for the Company since at least 2007.

As a result of defendantsa™ false and misleading statements, Regions stock traded at inflated levels during the Class Period. However, the Companya™s share price declined significantly as the truth leaked into the market at the end of the Class Period.

Plaintiff seeks to recover damages on behalf of all purchasers of Regions common stock during the Class Period (the aClassa). 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 litigations 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.