Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Monday, April 22, 2024 | Back issues
Courthouse News Service Courthouse News Service

Shareholders Say Colonial BancGroup|Cheated on TARP Announcement

MONTGOMERY, Ala. (CN) - Colonial BancGroup defrauded investors by announcing on Dec. 2 that it would get $550 million through the Troubled Asset Relief program, but not disclosing until Jan. 27 that that was contingent upon raising another $300 million itself, shareholders say in a federal class action.

Shareholders say Colonial's share price rose from $1.76 to $3.08 after the first announcements, but tanked to 85 cents the day after the Jan. 27 revelation. It remains about 80 cents a share.

Also sued are CEO Robert Lowder, CFO Sarah Moore, and CAO T. Brent Hicks.

Lead counsel is Battle Fleenor & Green of Birmingham.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...