BIRMINGHAM, Ala., Oct. 8 /PRNewswire/ -- The law firm of Whatley, Drake & Kallas, LLC (WDK) today announced that a class action lawsuit was filed in the United States District Court for the Northern District of Alabama on behalf of investors who held common stock of Regions Financial Corp. on either August 14, 2006, or at any time from October 3, 2006 through November 4, 2006, inclusive (the "Class").
The complaint, which was filed on October 2, 2009, alleges that Regions and several of its current and former officers and directors violated Federal securities laws by allowing or authorizing the solicitation of proxies or consent to a resolution approving a merger/acquisition between Regions and AmSouth, another Birmingham-based bank, in October 2006, through the use of a materially misleading joint proxy statement,. Also named as defendants are Merrill Lynch, Price, Fenner & Smith, Inc. ("Merrill Lynch), which was Regions' financial advisor in connection with the acquisition, and Ernst & Young, LLP ("E&Y"), which served as outside auditor to both Regions and AmSouth.
The complaint alleges that the joint proxy statement, which urged shareholders to vote for the acquisition, omitted material facts about and/or falsely misrepresented AmSouth's and Regions' financial condition. False pre-merger financial statements were incorporated into the joint proxy statement and used to persuade shareholders about the benefits of the proposed combination and/or conceal the risks associated with the transaction. The statement also omitted material facts and/or contained false material representations about the benefits of merging the two banks into a single operation, the risks attended with such that acquisition or the fairness of the transaction to Regions shareholders. The Company was finally forced in January 2009 to announce a $6 billion write down of goodwill attributable to the AmSouth acquisition, approximately 60% of the $10 billion purchase price.
If you are a member of the class described above and wish to serve as lead plaintiff, you must move the Court no later than Monday, December 7 2009. Any member of the class may move the Court to serve as lead plaintiff through the counsel of their choice. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. If you wish to discuss this case or have any questions concerning this notice or your rights or interests, please contact Daniel Gleason of WDK at 1-800-695-6750 or 1-205-328-9576, or via e-mail at dgleason@wdklaw.com.
Whatley, Drake & Kallas, LLC is a national law firm with offices in Birmingham, New York City, and Boston. The Firm's practice is concentrated on complex class action and derivative litigation, including securities, ERISA, 401k, healthcare, insurance, antitrust, mass tort and consumer litigation. The Firm also remains devoted to its longstanding representation of unions and workers throughout the United States and represents several Taft-Hartley plans.
CONTACT: Joe R. Whatley Jr. (205/328-9576)
Whatley, Drake & Kallas, LLC
CONTACT: Joe R. Whatley Jr., +1-205-328-9576
