NEW YORK, May 20, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Doral Financial Corporation ("Doral" or the "Company") (NYSE: DRL ) and certain of its officers. The class action, filed in United States District Court, District of Puerto Rico, and docketed under 3:14-cv-01414, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Doral securities between April 2, 2012 and May 1, 2014 both dates inclusive (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.
If you are a shareholder who purchased Doral securities during the Class Period, you have until July 14, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Doral was organized in 1972 under the laws of the Commonwealth of Puerto Rico and operates as a bank holding company. Doral's principal operations are conducted in Puerto Rico, with growing operations in the United States, specifically in the New York City metropolitan area, as well as in northwest and south Florida.
The Complaint alleges that throughout the Class Period, Defendants issued materially false and misleading statements regarding the Company's financial performance and future prospects and failed to disclose adverse facts, including that: (a) the Company had a material weakness in its internal controls over financial reporting and disclosure controls, and that such controls were ineffective; (b) the Company had understated its loan reserves; and (c) as a result of having understated its loan loss reserves, 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.
On March 18, 2014, Doral notified the SEC that it was unable to timely file its annual financial report for fiscal 2013. On this news, the price of Doral common stock dropped more than $1 per share, closing down at $11.17 per share on March 18, 2014, from its close the prior evening of $12.30 per share.
On Friday March 21, 2014, after the close of trading, Doral issued a press release and filed its annual financial report with the SEC on Form 10-K, for the period ended December 31, 2013. On this news, the price of Doral common stock declined from its close of $11.55 per share on the evening of March 21, to close at $10.76 per share on Monday, March 24th.
On May 1, 2014, the Company announced that it has been advised by the Federal Deposit Insurance Corporation (the "FDIC") that the bank could not include some or all of its tax receivables from the Puerto Rican government in its calculation of Tier 1 capital. Puerto Rico tax receivables accounted for $289 million of the bank's approximately $679 million of Tier 1 Capital as of December 31, 2013. On this news, shares of Doral fell $6.09, or more than 62%, on intraday trading to $3.73, on unusually heavy trading volume on May 2, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
Robert S. Willoughby Pomerantz LLP
