The U.S. District Court for the Southern District of New York has appointed the law firms of Brower Piven and Levi & Kersinski, as the lead and co-lead plaintiffs’ counsel in the securities class action against E*Trade Financial Corp. (ETFC).
According to the Stanford Securities Class Action Clearinghouse (citing Sunstream News), the lawsuit alleges that the company issued materially false and misleading statements and failed to disclose that the company was experiencing a rise in delinquency rates in its mortgage and home equity portfolios; failed to timely record an impairment on its mortgage and home equity portfolios and materially overvalued its securities portfolio, which includes assets backed by mortgages; and lacked a reasonable basis for the positive statements it made about the company’s earnings and prospects.
