SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP reminds investors that they have until July 14, 2014 to file for lead plaintiff in a securities class action lawsuit against Doral Financial Corporation (NYSE: DRL), if they purchased the Company's common stock during the period between April 2, 2012 and May 1, 2014 (the “Class Period”). The case is pending in the United States District Court for the District of Puerto Rico.
Additional Information about the Lawsuit:
Doral and certain of its executives are charged with issuing a series of materially false and misleading statements during the Class Period, violating federal securities laws.
On March 21, 2013, Doral issued a press release and filed its annual financial report on Form 10-K for the period ended December 31, 2013, disclosing that the Company had been forced to take an increased provision for loan and lease losses in the fourth quarter of 2013, and as a result, the Company was reporting a net loss for its 2013 fourth quarter. In addition, the Company stated that it would be forced to restate its previously reported financial statements. On this news, the price of Doral common stock declined. Then on May 1, 2014, after the close of trading, the Company filed a Current Report on Form 8-K with the SEC disclosing that the Puerto Rican government was disputing whether a purported tax receivable due Doral, which accounted for $289 million of the bank's $679 million of so-called Tier 1 capital as of the end of fiscal 2013, was indeed payable, and that the U.S. Federal Deposit Insurance Corporation (“FDIC”) had advised Doral that it could not include the tax receivable in its Tier 1 capital ratio, rendering the bank significantly undercapitalized. Doral further disclosed that the FDIC had ordered Doral to revise its capital plan, which it stated could force the Company to sell assets. On this news, the price of Doral common stock, which had traded as high as $25 per share in intraday trading during the Class Period, fell approximately 85% from its Class Period high to close at $3.73 per share on May 2, 2014.
Plaintiff seeks to recover damages on behalf of all purchasers of Doral publicly traded securities during the Class Period. If you wish to serve as a lead plaintiff, you must move the Court no later than July 14, 2014. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker (email@example.com) at 619-814-4471. If you email, please include your phone number.
More information concerning this action is also available at www.johnsonandweaver.com. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm with offices in New York, New York and San Diego, California. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.