Regions Financial Corporation Investor Files Lawsuit Against Regions Financial CP

An investor in REGIONS FINANCIAL CP (NYSE: RF) has filed a lawsuit in the United States District Court for the Northern District of Alabama on behalf of investors who held common stock of Regions Financial Corp. (NYSE: RF) on either August 14, 2006, or at any time from October 3, 2006 through November 4, 2006, against Regions Financial Corp. (RF).

According to the complaint the plaintiff alleges that Regions and several of its current and former officers and directors violated Federal securities laws by allowing or authorizing the solicitation of proxies or consent to a resolution approving a merger/acquisition between Regions and AmSouth, another Birmingham-based bank, in October 2006, through the use of a materially misleading joint proxy statement. The complaint alleges that “the joint proxy statement, which urged shareholders to vote for the acquisition, omitted material facts about and/or falsely misrepresented AmSouth's and Regions' financial condition. False pre-merger financial statements were incorporated into the joint proxy statement and used to persuade shareholders about the benefits of the proposed combination and/or conceal the risks associated with the transaction. The statement also omitted material facts and/or contained false material representations about the benefits of merging the two banks into a single operation, the risks attended with such that acquisition or the fairness of the transaction to Regions shareholders, so the lawsuit. REGIONS FINANCIAL CP in January 2009 announced a $6 billion write down of goodwill attributable to the AmSouth acquisition, approximately 60% of the $10 billion purchase price.

Regions Financial Corporation, located in Birmingham, Alabama, is a financial holding company that operates throughout the South, Midwest and Texas. The Company provides traditional commercial, retail and mortgage banking services, as well as other financial services in the fields of investment banking, asset management, trust, mutual funds, securities brokerage, insurance and other specialty financing. Regions Financial had in 2007 $141.04172billion in Total Assets and in 2008 $146.24781billion. Regions Financial reported in 2007 a Net Income of $1.2511billion and in 2008 a Net Loss of $5.594.31billion. Regions Financial shares RF traded recently at $5.95 per share, down from its 52weekHigh of $12.96 per share, $25.73 per share in February 2008, $37.19 per share in 2007 and $38.87 per share in 2006.