In re Colonial BancGroup, Inc. Securities Litigation
A $10.5 million partial settlement in this case involving allegations of securities violations.
On April 18, 2012, the Honorable R. David Proctor of the United States District Court for the Middle District of Alabama, Northern Division, granted final approval to a partial settlement in the amount of $10.5 million in cash in the class action In re Colonial BancGroup, Inc. Sec. Litig., 2:09-CV-00104-RDP-WC.
Labaton Sucharow is the Court-appointed lead counsel for lead plaintiffs Arkansas Teacher Retirement System, State-Boston Retirement System, Norfolk County Retirement System and City of Brockton Retirement System and the settlement class.
The class alleges generally that certain officers and directors of Colonial BancGroup, Inc. (“Colonial”) and underwriter defendants made material misstatements and omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12(a)(2) and 15 of the Securities Act of 1933.
This partial settlement resolves claims against officer and director defendants: Robert E. Lowder, Sarah H. Moore, T. Brent Hicks, Lewis E. Beville, William Britton, Jerry J. Chesser, Augustus K. Clements, III, Robert S. Craft, Patrick F. Dye, Hubert L. Harris, Jr., Clinton O. Holdbrooks, Harold O. King, Deborah L. Linden, John Ed Mathison, Milton E. McGregor, John C.H. Miller, Jr., Joseph D. Mussafer, William E. Powell, III, James W. Rane, Simuel Sippial, Jr., Edward V. Welch, Sheila P. Moody and Kamal Hosein. The litigation continues against the non-settling defendants in the action.
If you purchased: (i) the common stock of Colonial; (ii) Colonial’s common stock traceable to the company’s April 23, 2008 stock offering pursuant to the Registration Statement and Prospectus filed with the Securities and Exchange Commission (the Stock Offering); or (iii) the $250 million worth of Subordinated Notes due in 2038, paying 8.875% interest on a quarterly basis, pursuant or traceable to Colonial’s Form S-3/A Shelf Registration Statement and Prospectus dated November 12, 2004 and Form 424 (b)(2) Prospectus Supplement dated February 28, 2008 (the Note Offering) during the period between April 18, 2007 and August 6, 2009, inclusive, and were allegedly damaged thereby, you may be eligible to recover if you submit a proof of claim and release form (“proof of claim”) with supporting documents by February 29, 2012.
The deadline for objecting to the Settlement or for seeking exclusion from the Settlement Class has passed. A Settlement Hearing was held on January 25, 2012 at the Frank M. Johnson U.S. Courthouse, One Church Street, Montgomery, Alabama 36104. The claims administrator is processing claims.
Copies of relevant settlement documents can be accessed by clicking on the links to the right.