CVB Financial Corp. Investors File Lawsuit Alleging Securities Laws Violations
An investor in CVB Financial Corp. (NASDAQ:CVBF) has filed a lawsuit in the United States District Court for the Central District of California against CVB Financial Corp. over alleged violations of Federal Securities Laws.
CVB Financial Corp., located in Ontario, California, is a bank holding company of Citizens Business Bank (the Bank). According to the complaint the plaintiff alleges on behalf of purchasers of the common stock of CVB Financial Corp. (NASDAQ:CVBF) between October 21, 2009 and August 9, 2010 that CVB Financial Corp., and certain of its Officers violated the Securities Exchange Act of 1934 by issuing between October 21, 2009 and August 9, 2010 a series of materially false and misleading statements related to its business and operations.
On August 9, 2010, after the close of trading, CVB Financial Corp. disclosed that on July 26, 2010, it received a subpoena related to its lending practices from the Los Angeles office of the United States Securities & Exchange Commission (“SEC”). CVB Financial Corp stated in its second-quarter 10-Q filing that the focus of the SEC investigation was its loan underwriting guidelines, provisions for loan losses and loan risk grading. In addition, the subpoena requests information regarding presentations CVB Financial has given or conferences it has attended with analysts, brokers, investors or prospective investors.
Then on August 10, 2010, CVB shares declined over 22% to close at $8 per share. CVB Financial Corp. shares (CVBF) are currently down from its 52weekHigh of $11.85 per share and traded during 2007 CVBF shares as high as $13.20 per share, and during 2008 as high as $15.01 per share. CVBF shares traded recently at $7.31 per share.


