Lerach Coughlin Stoia Geller Rudman & Robbins LLP
("Lerach Coughlin") (http://www.lerachlaw.com/cases/firstbancorp/)
today announced that a class action has been commenced on behalf of an
institutional investor in the United States District Court for the
Southern District of New York on behalf of purchasers of First
BanCorp ("First BanCorp") (NYSE:FBP) publicly traded securities
during the period between October 20, 2003 and August 25, 2005 (the
"Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at wsl@lerachlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/firstbancorp/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges First BanCorp and certain of its officers and directors with violations of the Securities Exchange Act of 1934. First BanCorp operates as the holding company for First Bank Puerto Rico, which provides various financial services in Puerto Rico, the U.S. Virgin Islands, and British Virgin Islands.
The complaint alleges that during the Class Period, defendants issued false statements about First BanCorp's earnings, assets, capital and prospects causing the Company's stock to trade at artificially inflated levels. While the Company's stock price dropped somewhat in the late spring of 2005 due to problems announced by First BanCorp's competitors in Puerto Rico, as well as an adverse interest rate environment, the stock soon recovered as defendants did not own up to significant accounting issues, such as those disclosed earlier by its competitors, and the Company continued to report favorable financial results. Then on August 25, 2005, the Company issued a press release announcing that the Company had "received a letter from the (SEC) in which the SEC indicated that it was conducting an informal inquiry into the Company. The inquiry pertains, among other things, to the accounting for mortgage loans purchased by the Company from two other financial institutions during the calendar years 2000 through 2004." As a result of this disclosure, First BanCorp's stock dropped to $18.23 per share on August 26, 2005. Later, on September 30, 2005, both the Company's CEO and CFO suddenly announced they were resigning.
According to the complaint, during the Class Period defendants concealed the following adverse information from the investing public: (a) the Company's financial statements were materially false and misleading in that the Company had manipulated its accounting for mortgage loans purchased between 2000 and 2004; (b) the Company's internal controls were grossly weak, thereby allowing the Company's top management to manipulate them at will; (c) the Company's "record" quarterly income reported during the Class Period was a product of accounting fraud, not synergies produced by effective fiscal and personnel management; and (d) as a result, the Company's published financial statements violated Generally Accepted Accounting Principles.
Plaintiff seeks to recover damages on behalf of all purchasers of First BanCorp publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Lerach Coughlin, a 160-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at wsl@lerachlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/firstbancorp/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges First BanCorp and certain of its officers and directors with violations of the Securities Exchange Act of 1934. First BanCorp operates as the holding company for First Bank Puerto Rico, which provides various financial services in Puerto Rico, the U.S. Virgin Islands, and British Virgin Islands.
The complaint alleges that during the Class Period, defendants issued false statements about First BanCorp's earnings, assets, capital and prospects causing the Company's stock to trade at artificially inflated levels. While the Company's stock price dropped somewhat in the late spring of 2005 due to problems announced by First BanCorp's competitors in Puerto Rico, as well as an adverse interest rate environment, the stock soon recovered as defendants did not own up to significant accounting issues, such as those disclosed earlier by its competitors, and the Company continued to report favorable financial results. Then on August 25, 2005, the Company issued a press release announcing that the Company had "received a letter from the (SEC) in which the SEC indicated that it was conducting an informal inquiry into the Company. The inquiry pertains, among other things, to the accounting for mortgage loans purchased by the Company from two other financial institutions during the calendar years 2000 through 2004." As a result of this disclosure, First BanCorp's stock dropped to $18.23 per share on August 26, 2005. Later, on September 30, 2005, both the Company's CEO and CFO suddenly announced they were resigning.
According to the complaint, during the Class Period defendants concealed the following adverse information from the investing public: (a) the Company's financial statements were materially false and misleading in that the Company had manipulated its accounting for mortgage loans purchased between 2000 and 2004; (b) the Company's internal controls were grossly weak, thereby allowing the Company's top management to manipulate them at will; (c) the Company's "record" quarterly income reported during the Class Period was a product of accounting fraud, not synergies produced by effective fiscal and personnel management; and (d) as a result, the Company's published financial statements violated Generally Accepted Accounting Principles.
Plaintiff seeks to recover damages on behalf of all purchasers of First BanCorp publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Lerach Coughlin, a 160-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.
© 2005 Business Wire
