Labaton Sucharow LLP has been appointed lead counsel in the securities class action against Colonial BancGroup. Myron H. Thompson of the Middle District of Alabama has also appointed State-Boston Retirement System, Norfolk County Retirement System, City of Brockton Retirement System, and Arkansas Teacher Retirement System as lead plaintiffs. The lead plaintiffs represent a class of purchasers of Colonial’s securities between January 23, 2008 and January 27, 2009, inclusive (the “Class Period”).
Plaintiffs allege that, despite the continued softening of the real estate and credit markets in the first half of 2008, defendants repeatedly assured Colonial investors that the Company had taken the appropriate steps to decrease its exposure to troubled mortgages. After the market closed on January 27, 2009, Colonial announced for the first time that its receipt of $550 million from the U.S. Treasury’s Troubled Assets Relief Program (“TARP”) was conditioned upon the Company raising an additional $300 million in equity.
