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Stull, Stull & Brody Announces Class Action Lawsuit on Behalf of Investors in Fifth Third Bancorp


Stull, Stull & Brody

2008-07-16 15:40:00

Stull, Stull & Brody Announces Class Action Lawsuit on Behalf of Investors in Fifth Third Bancorp

NEW YORK, NY–(EMWNews – July 16, 2008) – Attorney Advertising. Notice is hereby given

that a class action has been commenced in the United States District Court

for the Southern District of Ohio, on behalf of all persons who purchased

the securities of Fifth Third Bancorp (“FITB” or the “Company”) (NASDAQ: FITB) (NYSE: FTB-PA) (NYSE: FTB/PA) (NYSE: FTB-PC) (NYSE: FTB/PC) from

October 19, 2007 through June 17, 2008, inclusive (the “Class Period”),

against the Company and Kevin T. Kabat, the Company’s president and chief

executive officer, alleging violations under the Securities Exchange Act of

1934 15 U.S.C. §§ 78j(b) and 78t(a) and Rule 10b-5, promulgated thereunder

by the SEC, 17 C.F.R. § 240.10b-5 (the “Class”).

This action is also brought on behalf of a sub-class (the “Sub-Class”) of

Class members who purchased $750,000,000 (in aggregate liquidation amount)

of 7.25% Trust Preferred Securities, liquidation amount $25 per security,

which were registered pursuant to an automatic shelf registration statement

on Form S-3 (SEC File Nos. 333-141560 and 333-141560-03) filed with the

Securities and Exchange Commission on March 26, 2007, (the “Trust Preferred

Securities”), the sale of which to investors was in an initial public

offering which became effective on or about October 25, 2007, Fifth Third

Capital Trust VI (the “Offering”) (NYSE: FTB-PB) (NYSE: FTB/PB), seeking to

pursue remedies under Sections 11 and 15 of the Securities Act of 1933 (the

“Securities Act”), 15 U.S.C. §§ 77k and 77l. The Securities Act claim is

also bought against the underwriters of Fifth Third Capital Trust VI

preferred securities, Citigroup Global Markets Inc.; Merrill Lynch, Pierce,

Fenner & Smith Incorporated; Morgan Stanley & Co. Incorporated; UBS

Securities LLC.; Banc of America Securities LLC; and Credit Suisse

Securities (USA) LLC.

The Complaint alleges, among other things, that Defendants issued

materially false and misleading statements concerning the quality of Fifth

Thirds Tier 1 capital, the relevant ratios and sufficiency of its Tier 1

capital, the necessity to take net charge-offs stemming from increasing

credit losses, and the need to shore up capital due to its exposure to

poorly performing real estate markets in the Mid-West region. As a result

of these materially false and misleading statements and omissions,

plaintiffs allege that the price of Fifth Third’s securities were

artificially inflated during the Class Period. On June 18, 2008, the

Company disclosed certain of the adverse factors of FITB’s business and

announced that it would slash its quarterly dividend and its earnings would

be as little as 1 to 5 cents a share for the second quarter. In addition,

the Company said it would sell subsidiaries and issue preferred stock to

raise $2 billion. These disclosures caused Fifth Third’s common stock to

decline 27%, to close on June 18, 2008 at $9.26 per share on very heavy

volume. The Company’s stock had traded as high as $28.00 per share in

February, 2008.

In order to be appointed lead plaintiff in the securities case, the Court

must determine that the class member’s claim is typical of the claims of

other class members, and that the class member will adequately represent

the class. A lead plaintiff is a representative party that acts on behalf

of other class members in directing the litigation. Under certain

circumstances, one or more class members may together serve as “lead

plaintiff.” If you wish to serve as lead plaintiff, you must move the Court

no later than August 19, 2008. Your ability to share in any recovery is

not, however, affected by the decision whether or not to serve as a lead

plaintiff. You may retain Stull, Stull & Brody, or other counsel of your

choice, to serve as your counsel in this action. Stull, Stull & Brody has

litigated many class actions for violations of securities laws in federal

courts over the past 30 years and has obtained court approval of

substantial settlements on numerous occasions. Stull, Stull & Brody

maintains offices in New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this

notice or your rights or interests with respect to these matters, please

contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at

[email protected], by calling toll-free 1-800-337-4983, or by fax at

212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street,

New York, NY 10017. You can also visit our website at

Stull, Stull & Brody also has substantial experience representing employees

who suffered losses from purchases of their employer’s stock in their

401(k) plans. If you bought Fifth Third stock through your Fifth Third

retirement account and have information or would like to learn more about

these claims, please contact us.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

Tzivia Brody, Esq.
Stull, Stull & Brody

Toll-Free: 1-800-337-4983
Fax: 1-212-490-2022

6 East 45th Street
New York, NY 10017

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