Settled: June 19, 2015
Colonial I Settlement with the officer and director defendants: Granted Final Approval on April 18, 2012
Colonial II Settlement with the underwriter defendants, PwC, and the tolled defendants: Granted Final Approval on June 19, 2015
On April 18, 2012, the Honorable R. David Proctor granted final approval to a partial settlement with the former officer and director defendants in the amount of $10.5 million in cash (the Colonial I Settlement), in the class action In re Colonial BancGroup, Inc. Securities Litigation, No. 09-cv-00104. The deadlines in the Colonial I Settlement to submit a Proof of Claim, object to the Colonial I Settlement, or seek exclusion from the class have passed.
On June 19, 2015, the Honorable R. David Proctor granted final approval to the $7.9 million cash settlement with the remaining defendants – the Underwriter Defendants, the Tolled Defendants, and PricewaterhouseCoopers LLP (PwC) (the Colonial II Settlement). The Colonial II Settlement resolves all claims in the action.
Labaton Sucharow is the court-appointed lead counsel for lead plaintiffs and the class.
The lead plaintiffs have alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act) and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission (SEC) and violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (the Securities Act). The Exchange Act claims alleged violations of the anti-fraud provisions of the securities laws arising from alleged misstatements and omissions made in connection with Colonial's publicly filed financials. The Securities Act claims arise from a subordinated note offering and a stock offering conducted by Colonial in March and April of 2008, respectively.
If you purchased or acquired during the period between April 18, 2007 and August 6, 2009, inclusive: (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); and (iii) the $250 million worth of Subordinated Notes due in 2038, paying 8.875 percent interest on a quarterly basis (Subordinated Notes), 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), and were allegedly damaged thereby you may be entitled to a payment from the proposed Colonial II Settlement by July 27, 2015.
To be eligible for a payment from the proposed Colonial II Settlement with PwC, the Underwriter Defendants, and the Tolled Defendants, you must EITHER (1) have already submitted a claim in connection with the prior Colonial I Settlement by February 28, 2014; or (2) if you did not previously submit a claim in connection with the Colonial I Settlement by February 28, 2014, you must timely submit a validly completed Proof of Claim with supporting documents in the Colonial II Settlement.
A settlement hearing in connection with the Colonial II settlement was held on Thursday, June 18, 2015, before the Honorable R. David Proctor of the United States District Court for the Northern District of Alabama (assignment by designation) in the Hugo L. Black United States Courthouse, 1729 5th Avenue North, Birmingham, Alabama 35203, in Courtroom 7A.
The deadline for objecting to the Colonial II Settlement or for seeking exclusion from the Class was May 28, 2015.
Relevant documents can be accessed by clicking on the links to the right, under Case Materials.