PFF Bancorp Inc. Case 01/05/2009
March 26, 2012 (Update) -- $8.25 million settlement proposed. According to the Notice:
STATEMENT OF PLAINTIFFS’ RECOVERY
The proposed settlement will result in the creation of a cash settlement fund in the principal amount of Eight Million Two Hundred Fifty Thousand Dollars, plus any interest that may accrue thereon (the “Settlement Fund”).
The Settlement Fund, subject to deduction for, among other things, costs of class notice and administration and certain taxes and tax related expenses and for attorneys’ fees and expenses as approved by the Court, will be available for distribution to Class Members. Your recovery from this fund will depend on a number of variables, including the number of shares of PFF common stock you purchased or otherwise acquired beginning on October 23, 2006 through and including April 30, 2008, and the timing of your purchases, acquisitions, and any sales. In the unlikely event that 100% of the shares purchased or acquired by Class Members and entitled to a distribution under the Plan of Allocation described below participate in the settlement, the estimated average distribution per share of PFF common stock will be approximately $0.17 before deduction of Court-approved fees and expenses. Historically, actual claim rates are lower than 100%, resulting in higher per share distributions.
REASONS FOR SETTLEMENT
Lead Plaintiffs believe that the proposed settlement is a good recovery and is in the best interests of the Class. Because of the risks associated with continuing to litigate and proceeding to trial, there was a danger that the Class would not have prevailed on any of its claims, in which case the Class would receive nothing. Also, the amount of damages recoverable by the Class was and is challenged by Defendants. Recoverable damages in this case are limited to losses caused by conduct actionable under applicable law and, had the Litigation gone to trial, Defendants would have asserted that any losses of Class Members were caused by non-actionable market, industry, or general economic factors. Defendants also would have asserted that throughout the Class Period the uncertainties and risks associated with the purchase of PFF common stock were fully and adequately disclosed. The proposed settlement provides an immediate benefit to Class Members, and will avoid the years of delay that would likely occur in the event of a contested trial and appeals.
January 5, 2009 -- Class Action Lawsuit On Behalf Of PFF Bancorp. Inc (OTC: PFFB) Investors Against Certain Officers and Directors of PFF Bancorp, Inc. Filed
On Monday, January 5, 2009, a shareholder of PFF Bancorp. (OTC: PFFB) has filed a proposed securities class action lawsuit in the United States District Court for the Central District of California on behalf of purchasers of PFF Bancorp, Inc. (OTC:PFFBQ) common stock during the period between October 23, 2006 and November 21, 2008, against certain officers and directors of PFF Bancorp, Inc.
According to the complaint the plaintiff alleges that certain of PFF Bancorp, Inc.’s officers and directors violated the Securities Exchange Act of 1934 by issuing between October 23, 2006 and November 21, 2008 materially false and misleading statements regarding the company’s business and financial results and engaged in improper behavior, which harmed PFF’s customers and investors in its common stock, and the true facts were known by the defendants. The plaintiff alleges that defendants failed to disclose the lending to borrowers with little ability to repay the amount loaned and failing to inform investors of the impact of changes in the real estate market in San Bernardino and Riverside counties. The stockholder concludes that as a result of defendants’ false statements, PFF’s stock traded at artificially inflated prices between October 23, 2006 and November 21, 2008, reaching a high of $35.45 per share in December 2006. On November 21, 2008, after the market closed, the Bank was closed by regulators and taken over by U.S. Bancorp. Following this announcement, PFF’s stock declined to $0.01 per share or a total loss for investors, so the lawsuit.