Northern Trust Corporation Investor Files Lawsuit Alleging Securities Laws Violations
An investor of Northern Trust Corporation (NASDAQ:NTRS) filed a lawsuit in investor in the United States District Court for the Northern District of Illinois against Northern Trust Corp. over alleged violations of Federal Securities Laws.
Northern Trust Corporation, located in Chicago, Illinois, is a financial holding company, which provides asset servicing, fund administration, investment management, banking and fiduciary solutions for corporations, institutions and affluent individuals worldwide. According to the complaint the plaintiff alleges that Northern Trust Corp. and certain of its officers and directors violated Securities Exchange Act of 1934 by issuing between October 17, 2007 and October 20, 2009, materially false and misleading statements regarding its business and financial results and engaging in improper behavior that harmed Northern Trust's investors by failing to disclose the extent of its seriously delinquent commercial real estate loans and the true nature and risks associated with its once highly profitable securities lending program.
Then, on October 21, 2009, before the market opened, Northern Trust Corp. reported its third quarter 2009 earnings results, announcing third quarter results that fell short of expectations due in part to a serious decline in its securities lending program and to continuing pressure from its non-performing loans. On this news, so the lawsuit, Northern Trust's stock (NTRS) fell $3.29 per share to close at $54.16 per share on October 21, 2009, a one-day decline of nearly 6% on volume of over 8.55 million shares. Shares of Northern Trust Corporation (NASDAQ:NTRS) traded recently at $45.86 per share, down from its current 52weekHigh of $60.85 per share. During 2009 NTRS shares traded as high as $64.12 per share, and reached during 2008 $87 per share.


