BankUnited Financial Corporation (NASDAQ: BKUNA) Investor Securities Class Action Lawsuit 09/16/2008

If you purchased Class A common shares of BankUnited Financial Corporation (NASDAQ: BKUNA), you might have certain options and should contact the Shareholders Foundation, Inc.

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Company Name(s): 
BankUnited Financial Corp.
Case Name: 
BankUnited Financial Corp. Shareholder Class Action Lawsuit 09/16/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
United States District Court for the Southern District of Florida
Deadline To File for Lead: 
Date Settled: 
Settlement Amount: 
Deadline to Participate in Settlement: 

December 10, 2014 - The court ordered the authorization of the distribution of the net settlement fund.

June 14, 2013 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

August 28, 2012 - The court preliminarily approved the settlement.

September 30, 2011 - Parties filed a stipulation of settlement.

March 30, 2010 - The court granted the individual defendants' motions to dismiss.

August 28, 2009 - Three individual defendants filed a motion to dismiss.

June 30, 2009 - The lead plaintiffs filed an amended complaint on behalf of purchasers of BankUnited Financial Corporation (NASDAQ: BKUNA) Class A common shares between October 24, 2006 and June 19, 2008. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between October 24, 2006 and June 19, 2008.

April 6, 2009 - The lead plaintiffs and lead counsel were appointed.

November 17, 2008 - Lead plaintiff motions were filed.

September 16th, 2008 - An investor in shares of BankUnited Financial Corporation (NASDAQ: BKUNA now trading on the NYSE sheets as BKU) filed a lawsuit in the U.S. District Court for the Southern District of Florida against BankUnited Financial Corporation over alleged violations of Federal Securities Laws between April 18, 2006 and June 18, 2008.

According to the complaint the plaintiff alleges BankUnited Financial Corporation and certain of its officers and directors violated the Securities Exchange Act of 1934. Specifically the complaint alleges that during period between April 18, 2006 and June 18, 2008 , defendants made false and misleading statements concerning certain losses, mortgage appraisal process, and mortgages policies with regard to “piggy-back” loans. Specifically the lawsuit alleges that defendants misrepresented in regards to:

(a) the losses BankUnited Financial Corporation was likely to suffer due to BankUnited Financial Corporation’s poor underwriting standards, which losses would occur once interest rates reset on the billions of dollars of pay-option arms (adjustable rate mortgages where borrowers had the ability to choose their payment amount during the initial period of the loan);

(b) BankUnited Financial Corporation’s sketchy appraisal process, which permitted borrowers to obtain mortgages in excess of their ability to pay and in excess of the value of the underlying property; and

(c) BankUnited Financial Corporation’s policies with regard to “piggy-back” loans, which are essentially second mortgages made at the time a home is purchased to fund a down payment.

When the truth began to come to light, BankUnited Financial Corporation’s stock price plunged, damaging innocent investors, so the lawsuit. Plaintiff seeks to recover damages on behalf of all purchasers of BankUnited Financial Corporation common stock betwen April 18th, 2006 and June 18th, 2008.

BankUnited Financial Corporation was a savings and loan association based in Florida. On May 21, 2009 BankUnited Financial Corporation was seized by U.S. financial regulators and immediately handed over to a new holding company BankUnited Inc. On January 28, 2011 BankUnited Inc began trading on the New York Stock Exchange under the symbol BKU.