SunTrust Banks Inc (NYSE: STI) Preferred Securities Investor Class Action Lawsuit 05/04/2009

If you purchased SunTrust Capital IX 7.875% Trust Preferred Securities of SunTrust Banks Inc, you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
SunTrust Banks
Case Name: 
SunTrust Banks preferred Securities Shareholder Class Action Lawsuit 05/04/2009
Case Status: 
Case Dismissed
Affected Securities
NYSE: STI
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/04/2009
Court of Filing: 
U.S. District Court for the Northern District of Georgia
Deadline To File for Lead: 
07/14/2009
Case Dismissed: 
08/28/2012
Summary: 

August 28, 2012 - The court granted defendants' motions for reconsideration and dismissed the case.

September 28, 2011 - The defendants' filed motions for reconsideration.

September 7, 2011 - The court denied in part and granted in part defendants' motions to dismiss.

March 21, 2011 - Defendants filed motions to dismiss.

October 8, 2010 - The lead plaintiff filed another amended consolidated complaint.

September 10, 2010 - The court granted defendants' motions to dismiss with leave to amend.

January 29, 2010 - Defendants filed motions to dismiss.

November 30, 2009 - The lead plaintiff filed an amended consolidated complaint.

September 29, 2009 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

August 27, 2009 - Cases were consolidated.

July 14, 2009 - Lead plaintiff motions were filed.

June 8, 2009 - The plaintiff filed a notice of voluntary dismissal of a certain defendant without prejudice.

June 2, 2009 - Another investor filed a complaint.

May 15, 2009 - Another investor filed a complaint.

May 4, 2009 - An investor in SunTrust Capital IX 7.875% Trust Preferred Securities of SunTrust Banks Inc (NYSE: STI) filed a lawsuit in the U.S. District Court for the Northern District of Georgia on behalf of those who acquired SunTrust Capital IX 7.875% Trust Preferred Securities of SunTrust Banks Inc in its February 2008 public offering against SunTrust Banks Inc (NYSE: STI) over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges that SunTrust Banks Inc (NYSE: STI) and certain of its top officials and underwriters violated the Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. Specifically, so the lawsuit, on February 27, 2008, SunTrust Banks Inc filed a prospectus supplement to a shelf registration statement/prospectus dated October 18, 2006, pursuant to which SunTrust Banks Inc sold 27.6 million units of the Trust Preferred Securities to the public at $25 per unit, for proceeds of approximately $690 million and that the representations made in this registration statement/prospectus were materially false and misleading. Then on January 22, 2009, SunTrust Banks Inc announced a significant increase in its provision for loan losses along with the release of its earnings for the fourth quarter of 2008. At that time, SunTrust Banks Inc reported its first quarterly loss in two decades and cut its quarterly dividend from $0.54 to $0.10 per share. When this news became public, the price of the Trust Preferred Securities began to decline.

SunTrust Banks Inc is a diversified financial services holding company whose businesses provide a range of financial services to consumer and corporate clients. SunTrust Banks Inc is located in Atlanta, GA and had $179 billion in total assets and $189 billion in total assets in 2008. SunTrust Banks Inc reported a net income of $1.634 billion in 2007 and $795.77 million in 2008. STI Shares of SunTrust Banks Inc traded at $15.05 per share on Friday May 15, 2009, down from a 52 Week High of $64.00 per share.