Local 703, I.B. of T. Grocery and Food Employees Welfare Fund v. Regions Fin. Corp.
Eleventh Circuit Court of Appeals Win and $90 Million Recovery
On September 14, 2015, the Honorable Karon Owen Bowdre of the U.S. District Court for the Northern District of Alabama approved a $90 million settlement in the Regions Financial Corporation securities class action.
Regions provides traditional commercial, retail and mortgage banking services, as well as other financial services in the fields of investment banking, asset management, trust, mutual funds, securities brokerage, insurance and other specialty financing. During the class period, defendants issued false and misleading statements regarding the company’s operations and financial performance. Specifically, defendants misled shareholders by failing to properly account for the goodwill carried on Regions’ balance sheet, causing the company’s financial results to be materially false and misleading. As a result of defendants’ false and misleading statements, Regions stock traded at artificially inflated prices throughout the class period.
Previously, in August 2014, the Eleventh Circuit Court of Appeals affirmed the district court’s decision to certify a class action based upon alleged misrepresentations about Regions’ financial health before and during the recent economic recession, and in November 2014, the U.S. District Court for the Northern District of Alabama denied defendants’ third attempt to avoid plaintiffs’ motion for class certification.
Robbins Geller represented lead plaintiffs District No. 9, I.A. of M. & A.W. Pension Trust and Employees’ Retirement System of the Government of the Virgin Islands and obtained the $90 million settlement on behalf of purchasers of Regions common stock during the class period.
Robbins Geller attorney Matthew I. Alpert obtained this settlement on behalf of shareholders.
Local 703, I.B. of T. Grocery and Food Employees Welfare Fund v. Regions Fin. Corp., No. 2:10-cv-02847-KOB (N.D. Ala.).