NEW YORK, June 5, 2014 (GLOBE NEWSWIRE) -- The Rosen Law Firm, P.A. announces that a class action lawsuit has been filed on behalf of purchasers of Doral Financial Corp (NYSE: DRL ) securities between April 2, 2012 and May 1, 2014, inclusive, seeking to recover damages for violations of the federal securities laws.
To join the Doral class action, visit the firm's website at http://rosenlegal.com , or call Phillip Kim, Esq. or Jonathan Horne, Esq., toll-free, at 866-767-3653; you may also email at pkim@rosenlegal.com or jhorne@rosenlegal.com for information on the class action. The lawsuit is pending in the U.S. District Court for the District of Puerto Rico.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
According to the lawsuit, throughout the class period defendants issued materially false and misleading statements regarding Doral's true financial condition, and failed to disclose adverse facts, including that (a) because of errors in its mathematical models and incorrect data, Doral had greatly underestimated the amount it must charge as provision for loan and lease losses against earnings, and (b) Doral kept on its books a $229 million tax receivable it was not actually owed.
On March 18, 2014, Doral announced that it had understated its provision for loan and lease losses because of material deficiencies in its internal controls over financial reporting. On this news, the price of Doral common stock decreased from $12.30 to $11.17 per share. On March 21, 2014, Doral announced an increased provision of ALLL, a net loss for the fourth quarter of 2013, and that it was forced to restate the financial statements for the third quarter of 2013. On this news, Doral common stock dropped from $11.55 to $10.76 per share. Then on May 1, 2014, the Company announced that $226 million in tax receivables from the Government of Puerto Rico from purported prior-year tax overpayments could no longer be counted as Tier 1 regulatory capital. The following day, Doral common stock fell 62%, from $9.82 to $3.73. Finally, on June 2, 2014, the Company announced that the Federal Reserve Bank of New York has advised it to classify the tax receivable as a loss and write off the asset. On this news, Doral common stock declined from $3.56 to $2.97 per share.
If you wish to serve as lead plaintiff, you must move the Court no later than July 14, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. or Jonathan Horne, Esq. of The Rosen Law Firm, toll-free, at 866-767-3653, or via e-mail at pkim@rosenlegal.com or jhorne@rosenlegal.com . You may also visit the firm's website at http://rosenlegal.com .
The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
Laurence M. Rosen, Esq. Phillip Kim, Esq. Jonathan Horne, Esq. The Rosen Law Firm P.A. 275 Madison Avenue 34th Floor New York, New York 10016 Tel: (212) 686-1060 Toll Free: 1-866-767-3653 Fax: (212) 202-3827 www.rosenlegal.com
