WASHINGTON, Feb. 12, 2009 (GLOBE NEWSWIRE) -- Finkelstein Thompson LLP is currently investigating potential shareholder claims involving Colonial BancGroup, Inc. ("Colonial" or the "Company") (NYSE:CNB) and certain of its officers and directors.
On December 2, 2008, Colonial announced that it had received Troubled Asset Relief Program ("TARP") funding approval of $550 million. In response to that announcement, the Company's stock price surged to $2 per share. Colonial, however, failed to disclose that as a prerequisite to receiving the funding, the Company would have to raise outside capital of $300 million. When Colonial finally announced this condition after the markets closed on January 27, 2009, the Company's stock price plunged from a close of $1.58 on January 27, 2009 to $0.85 the next trading day -- a 46% drop on volume exceeding 26 million shares.
If you purchased Colonial securities during the period of December 2, 2008 through January 27, 2009, please contact Finkelstein Thompson's Washington, DC offices at (877) 337-1050 or by email at contact@finkelsteinthompson.com.
Finkelstein Thompson LLP has spent over three decades delivering outstanding representation to institutional and individual clients in connection with securities and other finance-related litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers. To learn more about Finkelstein Thompson LLP, please visit our web site at www.finkelsteinthompson.com.