WSB Financial Group Inc (NASDAQ: WSFG) Investor Securities Class Action Lawsuit 10/30/2007

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Company Name(s): 
WSB Financial Group
Case Name: 
WSB Financial Group Shareholder Class Action Lawsuit 10/30/2007
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: WSFG
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/30/2007
Court of Filing: 
U.S. District Court for the Western District of Washington
Date Settled: 
03/27/2009
Settlement Amount: 
$4,850,000
Deadline to Participate in Settlement: 
02/19/2009
Summary: 

March 27, 2009 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

November 21, 2008 - The court preliminarily approved the settlement.

October 15, 2008 - Parties filed a stipulation of settlement.

May 9, 2008 - The defendants filed motions to dismiss.

April 11, 2008 - The lead plaintiff filed a consolidated complaint.

March 10, 2008 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

January 2, 2008 - Additional lead plaintiff motions were filed.

December 31, 2007 - A lead plaintiff motion was filed.

November 13, 2007 - An additional investor filed a complaint in the U.S. District Court for the Western District of Washington on behalf of investors who purchased WSB Financial Group Inc (NASDAQ: WSFG) common shares between December 14, 2006 and October 24, 2007.

November 8, 2007 - Another investor filed a complaint in the U.S. District Court for the Western District of Washington on behalf of investors who purchased WSB Financial Group Inc (NASDAQ: WSFG) common shares between December 14, 2006 and October 23, 2007.

October 30, 2007 - An investor in shares of WSB Financial Group Inc (NASDAQ: WSFG) filed a lawsuit in the U.S. District Court for the Western District of Washington against WSB Financial Group Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made in relation to its Initial Public Offering on December 13, 2006.

The complaint charges WSB Financial Group Inc, certain of its officers and directors, and WSB Financial Group Inc’s underwriter with failing to disclose that the company had been violating certain banking laws and regulations relating to the origination, administration and monitoring of construction and mortgage loans. Due to WSB Financial Group Inc’s misleading statements WSB Financial Group Inc (NASDAQ: WSFG) stock was traded as high as $21 per share during the class period.

The complaint further alleges that beginning in September of 2007 a series of announcements and investigations into the company’s lending practices caused the WSB Financial Group Inc (NASDAQ: WSFG) stock to plummet. In late September the company announced that due to the reduced demand of mortgage loans in the market 33 jobs would be eliminated in the mortgage division of the company and, that WSB Financial Group Inc’s executive vice president of sales and lending at Westsound Bank was terminated. As a result WSB Financial Group Inc (NASDAQ: WSFG) stock price fell from $15.30 to $12.40. In a final blow, the company announced that state and federal regulators were looking into possible fraud and misconduct in its real estate lending practices. Within two days of this announcement WSB Financial Group Inc (NASDAQ: WSFG) stock dropped nearly 60 percent, from $11.20 on October 24, 2007 to $4.73 on October 25, 2007.