NEW YORK, Feb. 23, 2009 (GLOBE NEWSWIRE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Middle District of Alabama on behalf of all purchasers of The Colonial BancGroup, Inc. ("Colonial" or the "Company") (NYSE:CNB) securities between December 2, 2008 and January 27, 2009, inclusive (the "Class Period".) A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint alleges that Colonial and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding the Company's participation in the United States Treasury Department's Troubled Asset Relief Program ("TARP"). Specifically, the Complaint alleges that on December 2, 2008, the Company announced that the United States Treasury had approved an application for a $553 million preferred equity investment through TARP. In response, shares of the Company's common stock rallied 50%.
On January 27, 2009, however, Colonial announced for the first time that the TARP funding was contingent upon Colonial raising $300 million in capital on its own. Upon this revelation, Colonial's stock price collapsed 46% on January 28, 2009, a day that was in fact a very favorable trading day for other bank stocks.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased Colonial securities between December 2, 2008 through January 27, 2009, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at: www.faruqilaw.com
If you purchased Colonial securities between December 2, 2008 and January 27, 2009, you may, not later than April 10, 2009, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
Anthony Vozzolo, Esq. Faruqi & Faruqi, LLP 369 Lexington Avenue, 10th Floor New York, NY 10017 Telephone: (877) 247-4292 or (212) 983-9330 E-mail: Avozzolo@faruqilaw.com