Kirby McInerney LLP Announces $168 Million Settlement of Securities Class Action Against National City Corporation08/29/2012
NEW YORK, August 29, 2012 - Kirby McInerney LLP has announced the $168 million settlement of a securities class action lawsuit against National City Corporation. The action, led by Kirby McInerney on behalf of the NY State Retirement Pension Fund, was brought on behalf of all persons who purchased or otherwise acquired the common stock of National City between April 30, 2007 and January 2, 2008, inclusive (the “Class Period”).
The lawsuit alleged that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business, including the extent of its exposure to sub-prime mortgage related losses. Plaintiffs allege that the defendants were aware - but concealed from the investing public - that: the sub-prime mortgages on the company’s books were a much bigger risk to the company’s financial position than represented; the Company was failing to adequately reserve for mortgage-related exposure, causing its balance sheet and financial results to be artificially inflated; and that defendants had no reasonable basis to make favorable predictions about the Company’s future dividend payments and future financial performance.
When the truth concerning the Company’s lending practices and financial condition was made known, the Company’s stock declined materially.
For further information, please visit the settlement website.