TierOne Corporation Hit by Investor Lawsuit
July 12, 2012 (Update) -- Proposed $3,100,000 settlement in the TierOne Corporation shareholder class action. Fairness hearing set for October 25, 2012.
According to the Notice:
Statement of Recovery. If approved by the Court, the Settlement will provide $3,100,000 (the “Settlement Amount”), plus interest (collectively, the “Gross Settlement Fund”), to pay claims of investors who purchased TierOne Stock during the time period from August 9, 2007 through May 14, 2010, inclusive (the “Class Period”). The Settlement represents an average recovery of $0.242 per share of TierOne Stock for the 12.8 million shares that were publicly owned and available for trading (TierOne’s “float”) as of May 14, 2010, the end of the Class Period. This estimate solely reflects the average recovery per outstanding share of TierOne Stock and is not an estimate of the actual recovery per share you should expect.
Reasons for Settlement. Class Counsel has undertaken an extensive factual investigation and analysis of the legal principles applicable to Lead Plaintiffs’ claims against Defendants, and of Defendants’ defenses to those claims, and has analyzed potential damages with the aid of a financial consultant, including the difficulty of establishing the amount of potential damages attributable to Defendants. Based on that investigation, Lead Plaintiffs and Class Counsel believe the Settlement is fair, reasonable, and adequate to Class Members, and they wish to settle the litigation on the terms and conditions stated in the Settlement.
Defendants deny all allegations of wrongdoing, fault, liability, violation of any law, or damage to Lead Plaintiffs and the Settlement Class. Defendants, however, recognize the uncertainty and risk of the outcome of any litigation, especially complex securities litigation, and the difficulties and substantial expense and length of time necessary to defend the litigation through the conclusion of potential discovery, summary judgment motions, trial, and appeals.
To eliminate the burden and expense of further litigation, Defendants wish to settle the litigation on the terms and conditions stated in the Settlement.
May 20, 2010 -- An investor in TONE stock filed a lawsuit in the United States District Court for the District of Nebraska on behalf of all persons or entities who purchased or otherwise acquired the common stock of TierOne Corporation (Pink Sheets: TONE) between August 8, 2008 and May 14, 2010, against TierOne Corp alleging violations of Federal Securities Laws.
TierOne Corporation, located in Lincoln, NE, is the holding company for TierOne Bank, which has two wholly owned subsidiaries, TMS Corporation of the Americas and United Farm & Ranch Management, Inc. While TierOne Corporation reported a Net Income of $41.31million in 2006, TierOne Corporation suffered a Net Loss of $12.43million in 2007, and $75.24million in 2008.
According to the complaint the plaintiff alleges that TierOne Corp and certain of the Company's executive officers and directors violated the Securities Exchange Act of 1934 by , among other things, issuing between August 8, 2008 and May 14, 2010, materially false and misleading statements, and failing to disclose facts necessary to make other statements not materially misleading, in various public statements concerning TierOne‘s financial condition. Then on April 25, 2010, TierOne Corp. filed with the SEC a letter and reported the resignation of KPMG as its independent auditor. KPMG withdrew its audit opinion and internal control assessment relating to TierOne Corp’s financial statements at and for the year ended December 31, 2008 as well as its review of TierOne Corp’s financial statements at and for the three months ended March 31, 2009 because those financial statements contain material misstatements and should not be relied upon by investors. Furthermore, on April 30, 2010, TierOne Corp. announced a proposed transaction with Great Western Bank to acquire assets from TierOne Corp was rejected by the Office of Thrift Supervision - TierOne Corp's primary regulator. As a result of the disclosures concerning the need to restate its prior financial statements for fiscal 2008 and interim financial reports for 2009 due to the material deficiencies in TierOne's internal financial controls, TierOne Corp’s stock (TONE) price plummeted, so the lawsuit. TierOne Corporation traded recently at $0.258per share, down from its 52weekHigh of $4.05 per share, and over $21 per share in 2008, $32.20 per share in 2007, and over $34.50 per share during 2006.