Popular Inc. Investor Class Action Lawsuit over alleged Securities Laws Violations - 05/14/2009
JULY 2011 - According to the Notice:
Description of the Action and the Class: This Notice relates to a proposed settlement of a class action lawsuit pending against Popular and individual
defendants Richard Carrión and Jorge A. Junquera (collectively, the “Settling Defendants,” and together with Lead Plaintiffs, the “Settling Parties”). The proposed Settlement, if approved by the Court, will provide relief to all persons and entities who purchased or acquired Popular common stock and/or Series B preferred stock (collectively, “Popular Stock”) during the time period between January 24, 2008 and February 19, 2009, inclusive (the “Class Period”), and were injured thereby (the “Class”).2
Statement of Class’s Recovery: Pursuant to the Settlement described herein, a settlement payment of $37,500,000 in cash (the “Settlement Amount”)
will be deposited into an interest-bearing escrow account for the benefit of the Class. The Settlement Amount together with all interest earned thereon shall be the “Settlement Fund”. Lead Plaintiffs’ damages expert estimates that approximately 138,937,015 shares of Popular common stock and 16,153,793 shares of Popular Series B preferred stock purchased by Class Members may have been affected by the alleged conduct at issue in the Action. If all Class Members elect to participate in the Settlement, it is estimated that the average per-share distribution from the Settlement Fund will be approximately $0.19 per affected share of Popular common stock and $0.71 per affected share of Popular Series B preferred stock, before the deduction of Court-awarded attorneys’ fees and expenses and the costs of notice and administration. Note that this is only an estimate of recovery. A Class Member’s actual recovery will be determined in accordance with the plan of allocation approved by the Court. The proposed Plan of Allocation is set forth on pages 5 - 9 below.
Statement of Potential Outcome of the Action: The Settling Parties disagree on both liability and damages and do not agree on the average amount of damages per share that would be recoverable if Lead Plaintiffs were to have prevailed on each claim alleged in the Action. The issues on which the Settling Parties disagree include: (1) whether the statements made or facts allegedly omitted were false, material, or otherwise actionable under the federal securities aws; (2) the extent to which the various matters that Lead Plaintiffs alleged were materially false or misleading influenced (if at all) the trading prices of Popular Stock at various times during the Class Period; (3) the extent to which the various allegedly adverse material facts that Lead Plaintiffs alleged were omitted influenced (if at all) the trading prices of Popular Stock at various times during the Class Period; (4) the extent to which external factors, such as general market conditions, influenced the trading prices of Popular Stock at various times during the Class Period; (5) the effect of various market forces influencing the trading prices of Popular Stock at various times during the Class Period; (6) the amount by which shares of Popular Stock were allegedly artificially inflated (if at all) during the Class Period; and (7) the appropriate economic model for determining the amount by which shares of Popular Stock were allegedly artificially inflated (if at all) during the Class Period.
MAY 2009 - An investor in Popular, Inc. (NASDAQ: BPOP) has filed a proposed securities class action lawsuit in the United States District Court for the District of Puerto Rico on behalf of purchasers of the securities of Popular, Inc. (NASDAQ: BPOP) between January 23, 2008 and January 22, 2009 against Popular, Inc and certain of its officers over alleged violations of Federal Securities Laws.
According to the complaint the plaintiff alleges that Popular, Inc and certain of its officers violated the Exchange Act by failing to disclose between January 23, 2008 and January 22, 2009 material adverse facts about Popular’s true financial condition, business and prospects. Then on January 22, 2009, Popular announced its financial results for the fourth quarter and year end of 2008, the period ended December 31, 2008. For the quarter, the Company reported a net loss of $702.9 million, citing to a higher provision for loan losses, among other things. In response to this announcement, shares of Popular;s common stock fell $2.52 per share, or 50%, to close at $ 2.46 per share, on heavy trading volume.
Popular, Inc., located in Hato Rey, PR, is a diversified bank holding company. Popular operates in three target markets: Puerto Rico, the mainland United States, and processing and other technology services in Puerto Rico, Venezuela, Florida and the Dominican Republic. Popular shares (BPOP) traded recently at $2.93 per share, down from a 52weekHigh of $12.45 per share and $18.87 per share in 2007 and almost $28 per share in 2005.