Frontier Financial Corporation (NASDAQ: FTBK) Investor Securities Class Action Lawsuit 04/15/2010

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Company Name(s): 
Frontier Financial
Case Name: 
Frontier Financial Shareholder Class Action Lawsuit 04/15/2010
Case Status: 
Lawsuit Filed
Case Status: 
Case Dismissed
Affected Securities
NASDAQ: FTBK
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/15/2010
Class Period Begin: 
07/22/2008
Class Period End: 
03/25/2009
Court of Filing: 
U.S. District Court for the Western District of Washington
Deadline To File for Lead: 
06/11/2010
Case Dismissed: 
12/27/2012
Summary: 

December 27, 2012 - The lead plaintiff voluntarily dismissed the appeal.

May 10, 2012 - The lead plaintiff filed a notice of appeal.

April 20, 2012 - The court granted the defendants' motion to dismiss and closed the case.

November 18, 2011 - The defendants filed a motion to dismiss.

October 14, 2011 - The lead plaintiff filed an amended complaint.

September 7, 2011 - The court granted the defendants' motion to dismiss and granted lead plaintiff leave to file an amended complaint.

December 16, 2010 - The defendants filed a motion to dismiss.

October 15, 2010 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Frontier Financial Corporation (NASDAQ: FTBK) common shares between July 22, 2008 through March 25, 2009. The lead plaintiff alleges that the defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by issuing false and misleading statements between July 22, 2008 through March 25, 2009.

August 3, 2010 - All cases were consolidated.

June 14, 2010 - Lead plaintiff motions were filed.

April 15, 2010 - An investor in shares of Frontier Financial Corporation (NASDAQ: FTBK) filed a lawsuit in the U.S. District Court for the Western District of Washington against Frontier Financial Corporation over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between July 22, 2008 and March 16, 2010.

According to the complaint the plaintiff alleges that Frontier Financial Corporation and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between July 22, 2008 and March 16, 2010, materially false and misleading statements regarding its business and financial results and engaged in improper behavior which harmed Frontier Financial Corporation's investors by failing to disclose the extent of seriously delinquent commercial real estate loans and construction and land loans.

In July 2008, the Federal Deposit Insurance Corp ("FDIC") and the state of Washington's Department of Financial Institutions ("DFI") conducted an investigation into Frontier Financial Corporation’s banking practices and cited Frontier Financial Corporation with engaging in certain "unsafe and unsound" practices. In March 2009, Frontier Financial Corporation entered into a cease-and-desist order with banking regulators and agreed to take certain corrective actions related to the findings of the July 2008 report by the FDIC and DFI.

Then on March 16, 2010, after the market closed, Frontier Financial Corporation announced that it had received a Supervisory Prompt Corrective Action Directive from the FDIC. The FDIC warned that Frontier Financial Corporation was "critically undercapitalized" which could lead to Frontier Financial Corporation being placed into conservatorship or receivership, raising doubt about the ability of the company to continue as a going concern, so the lawsuit. Frontier Financial Corporation also announced it would be restating its financial results for the quarter and year ended December 31, 2009.

On this news, Frontier Financial Corporation (NASDAQ: FTBK) stock dropped $1.35 per share to close at $2.89 per share on March 17, 2010, a one-day decline of nearly 32%. Shares of Frontier Financial Corporation (NASDAQ: FTBK) were down from its 52weekHigh of $30 per share. FTBK traded in September 2008 at over $185 per share, and in 2007 over $290 per share.

Frontier Financial Corporation, located in Everett, WA, is a bank holding company. Frontier has one subsidiary: Frontier Bank (the Bank), which is engaged in a general banking business and in businesses related to banking. The Bank is engaged in general banking business in Washington and Oregon, including the acceptance of demand, time and savings deposits and the origination of loans. Frontier Financial Corp. had in 2007 Total Assets of $3.99569billion and a Net Income of $73.94million, in 2008 Total Assets of $4.10444billion, and in 2009 $3.59498billion.