Fortis SA/NV (OTC: FORSY) Investor Securities Class Action Lawsuit 10/22/2008

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Company Name(s): 
Fortis
Case Name: 
Fortis Shareholder Class Action Lawsuit 10/22/2008
Case Status: 
Case Dismissed
Affected Securities
LUXSE: FOR
OTC: FORSF
OTC: FORSY
AMSTERDAM: FORA.AS
BRUSSELS: FORB.BR
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/22/2008
Class Period Begin: 
01/28/2008
Class Period End: 
10/06/2008
Court of Filing: 
Southern District of New York
Deadline To File for Lead: 
12/19/2008
Case Dismissed: 
02/18/2010
Summary: 

February 18, 2010 - The court granted the defendants' motion to dismiss and dismissed the case with prejudice.

July 22, 2009 - Defendants filed a motion to dismiss.

May 18, 2009 - The lead plaintiffs filed an amended complaint on behalf of investors who purchased OTC: FORSF common shares between September 17, 2007 and October 14, 2008. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between September 17, 2007 and October 14, 2008.

February 3, 2009 - The lead plaintiffs and lead counsel were appointed.

December 22, 2008 - Lead plaintiff motions were filed.

October 22, 2008 - An investor in shares of Fortis Bank SA/NV (formerly OTC: FORSF) filed a lawsuit in the U.S. District Court for the Southern District of New York against Fortis Bank SA/NV over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff charges Fortis Bank SA/NV and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that between January 28, 2008 and October 6, 2008 defendant issued materially fake and misleading statements regarding Fortis Bank SA/NV's business and financial results.

In specific the complaint alleges that between January 28, 2008 and October 6, 2008 Fortis Bank SA/NV and the individual defendants falsely portrayed Fortis Bank SA/NV as relatively immune from the effects of the global credit crisis and stated that Fortis Bank SA/NV's capital position remained strong and loan portfolio was solid, but in reality, Fortis Bank SA/NV was practically insolvent at all relevant times and needed to sell assets at fire-sale prices and raise capital at extraordinarily high rates to remain viable. Moreover, Fortis Bank SA/NV’s balance sheet was impaired by billions of dollars of poorly performing assets Fortis Bank SA/NV acquired when it purchased ABN AMRO in October 2007, so the lawsuit. Then the magnitude of Fortis Bank SA/NV's severe liquidity crisis became apparent on September 29th, 2008, when the governments of three separate countries (Netherlands, Belgium, and Luxembourg), agreed to bail-out Fortis Bank SA/NV so long as it would sell its troubled stake in ABN AMRO. Then on Saturday, October 4, 2008, it was reported that the Dutch government took over Fortis Bank SA/NV’s operations for $23 billion in a deal that came less than a week after the Netherlands, Belgium, and Luxembourg had agreed to invest 11.2 billion euros in Fortis Bank SA/NV. According to the complaint on October 14, 2008 Fortis Bank SA/NV traded on the Brussels exchange at the lowest levels that it had ever seen since it was formed 18 years ago, after selling most of its operations to three governments and BNP Paribas SA Fortis, which resumed trading after a six-day suspension, declined 78 percent to 1.22 euro, valuing the Company at $3.91 billion.