NEW YORK, May 15, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the District of Puerto Rico on behalf of all persons who purchased or otherwise acquired the securities of Doral Financial Corporation ("Doral Financial" or the "Company") (NYSE:DRL) during the period from April 2, 2012 and May 1, 2014 (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
The Complaint charges Doral Financial and certain of its executives with violations of federal securities laws. Specifically, the Complaint alleges that (i) the Company had a material weakness in its internal controls over financial reporting and disclosure controls, and that such controls were ineffective; (ii) the Company had under-reserved for loan losses; (iii) as a result of having under-reserved for loan losses, the Company's assets were overstated, its expenses were understated, its net income was overstated, and Doral Bank did not meet its Tier I regulatory capital requirements as stated throughout the Class Period and as required by bank regulators to operate the bank; and (iv) as a result of the foregoing, Defendants knew Doral Bank was undercapitalized and the Company was not on track to achieve the financial results they had led the market to expect during the Class Period.
If you wish to serve as lead plaintiff, you must move the Court no later than July 14, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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