MILWAUKEE, May 28, 2005 (PRIMEZONE) -- Ademi & O'Reilly, LLP (http://www.ademilaw.com/cases/R&G.php) announced that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of R&G Financial Corporation ("R&G") (NYSE:RGF) securities during the period between April 21, 2003 through and including April 25, 2005 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than June 27, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Guri Ademi at 866/264-3995 or via e-mail at gademi@ademilaw.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.ademilaw.com/cases/R&G.pdf/. 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 Corn Products and certain of its officers and directors with violations of the Securities Exchange Act of 1934. According to the complaint, R&G's financial statements were materially false and misleading when made because defendants failed to disclose the following: (1) that the Company's earnings quality had been significantly weakened by the Company's use of more aggressive assumptions to generate gain on sale income, as well as to the value it retained in its interest only ("IO") residuals in securitization transactions; (2) that R&G's methodology used to calculate the fair value of its IO residual interests was incorrect and caused the Company to overstate its financial results by at least $50 million; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (5) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.
On April 25, 2005, after the close of trading, R&G shocked the investing public when it announced that it would restate its earnings for 2003 and 2004.
On this news, R&G stock fell $8.14 per share, or 35 percent, to close at $15.04 on April 26, 2005, a two-year low.