METAIRIE, La., May 21, 2008 (PRIME NEWSWIRE) -- The Law Offices of Eric J. O'Bell, LLC ("O'Bell") announce that it is commencing an investigation into Franklin Bank Corp. ("Franklin Bank" or the "Company") (Nasdaq:FBTX) to determine whether possible Securities Act violations have occurred by issuing materially false and misleading statements to shareholders.
On May 19, 2008 after the markets closed, Franklin Bank, a savings and loan holding company, announced that the U.S. Securities and Exchange Commission is conducting an investigation related to its lending practices and possible accounting errors. On May 20, 2008, the CEO of Franklin Bank relinquished his position following a 10-week internal investigation that the Company said uncovered numerous accounting errors related to residential mortgage loans. Shares of the Company have recently fallen below $1.00 since trading near $15.00 in June 2007.
If you are a Franklin shareholder and/or have information that would assist in this ongoing investigation, or have other questions relating to a loss you've suffered in your investment, you may contact Eric J. O'Bell directly without obligation or cost to you at 504-456-8677; or by email to ejo@obelllawfirm.com.