NEW YORK, July 12, 2008 (PRIME NEWSWIRE) -- In what federal regulators are calling the second-largest U.S. bank failure in history, mortgage lender IndyMac Bancorp, Inc.'s (NYSE:IMB) operations have been taken over by the Federal Deposit Insurance Corp. (FDIC), the regulator that oversees the retail bank. The Office of Thrift Supervision (OTS) said it shut down IndyMac on Friday and that a successor institution, IndyMac Federal Bank, will be opened on Monday.
After IndyMac's stock price closed on Friday at $.28 per share -- down over 99% from IndyMac's share price of over $36 just one year ago -- the OTS said in a statement, "The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors' demands in the normal course of business and is therefore in an unsafe and unsound condition."
On June 30, 2008, Scott+Scott LLP filed a class action against IndyMac on behalf of those purchasing IndyMac common stock between August 17, 2007 and May 11, 2008, inclusive (the "Class Period"), for violations of the U.S. securities laws. The action will continue to proceed on behalf of the class despite the seizure by federal regulators. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding IndyMac's business and financial results and, as a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
If you purchased IndyMac common stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than August 11, 2008. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537 or visit the Scott+Scott website, http://www.scott-scott.com) for more information. There is no cost or fee to you.
Scott+Scott has significant experience in prosecuting major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primenewswire.com/ca/