WILMINGTON, DEL. (CN) – Directors of National City Corp. dumped $32 million of their own stock at inflated prices, based on inside information, before exposing the company’s massive exposure to subprime real estate loans, shareholders say in a derivative complaint in Chancery Court. While directors were dumping their shares, they caused the company to repurchase $3.4 billion of its own shares at inflated prices, and when reality became apparent, the stock lost 60 percent of its value – $11.3 billion – the suit states.
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