Stull, Stull & Brody Announces Class Action Lawsuit on Behalf of Investors in Fifth Third Bancorp
SOURCE:
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”) (
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”) (
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 www.ssbny.com.
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.
Contact: Tzivia Brody, Esq. Stull, Stull & Brody Toll-Free: 1-800-337-4983 6 East 45th Street |
|
Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89
Get Unlimited Organic Website Traffic to your Website
TheNFG.com now offers Organic Lead Generation & Traffic Solutions