NEW YORK, July 16, 2004 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action on behalf of persons or entities who purchased or otherwise acquired the securities of Commerce Bancorp (NYSE:CBH) ("Commerce Bank" or the "Company") between June 1, 2002 and June 28, 2004, inclusive (the "Class Period").
The action, entitled Semeran v. Commerce Bancorp, et al., (number not yet assigned) is pending in the United States District Court for the District of New Jersey and names as defendants, the Company, its Chief Executive Officer and Chairman of the Board, Vernon W. Hill, II, its Director of Commerce Bank of Pennsylvania from June 2002 to October 2003, Ronald A. White, its Chief Financial Officer, Douglas J. Pauls, its President of the Commerce Bank of Pennsylvania, Glenn K. Holck, and its Regional Vice President of Commerce Bank of Pennsylvania, Stephen M. Umbrell. A copy of the complaint can be obtained from the Court or can be viewed on the Wechsler Harwood web site at: www.whesq.com.
The Complaint charges that defendants violated the Securities Exchange Act of 1934. More specifically, the Complaint alleges that defendants made material misrepresentations and omissions in Company press releases, public filings and conference calls. Recently, a criminal indictment was filed in U.S. District Court for the Eastern District of Pennsylvania against a number of individuals including, among others, defendants White, Holck, and Umbrell. The federal investigation leading up to this indictment was never disclosed in the Company's SEC filings. As indicated in the Complaint, the federal indictment relates to allegations that Commerce Bank and/or its subsidiaries' employees, officers and directors acted to gain favor and, subsequently, business from the City of Philadelphia. The aggressive expansion of business by Commerce Bank, as well as the actions undertaken by the defendants, violated not only the Company's Codes of Ethics and Conduct, but also the federal securities laws.
Not disclosed to shareholders were the following facts: (a) throughout 2002, and until October 2003, Commerce Bank paid $15,000 a month (in addition to other payments) to defendant White in "consulting fees" apart from his compensation for serving on the Board and while he was acting as a top fund-raiser for Philadelphia Mayor John Street -- for 2002, alone, Commerce paid White $182,000; (b) in return for White's compensation, White directed Corey Kemp, City of Philadelphia treasurer (also indicted), to award financial services and contracts to Commerce Bank of Pennsylvania and to Commerce Capital Markets on Commerce Bank's behalf; (c) that during this time period, Commerce Bank waived certain conditions on loans to Kemp and made loans on favorable terms; (d) that the Company made numerous campaign contributions and provided other remuneration to public officials and political candidates in return for business despite the fact that banks are barred from donating money to elected officials who oversee municipal bond deals; and (e) that the Company attempted to get around the law by making hundreds of thousands of dollars of campaign contributions through a Political Action Committee it controlled. When the truth was finally revealed in the last days of June and through the indictment on June 30, 2004, Commerce Bank stock went tumbling from a close on June 28 of $64.46 a share to a close on June 29 of $61.15, and on June 30 of $55.01. The stock is down 16% since the indictment became public.
If you purchased or otherwise acquired Commerce Bank securities during the Class Period, you may request that the Court appoint you as lead plaintiff by August 31, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca