NEW YORK, June 10, 2009 LawFuel.com — Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of Raymond James Financial, Inc. (“RJF” or the
“Company”) (NYSE:RJF) between April 22, 2008 and April 14, 2009, inclusive (the “Class Period”). A copy of the complaint filed in this action can be viewed on the firm’s website at www.faruqilaw.com
RJF and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. Specifically, the Complaint alleges that defendants repeatedly touted its supposedly conservative management practices and avoidance of risky assets associated with subprime residential mortgages. Defendants, however, failed to disclose that RJF understated the credits risks of its wholly-owned subsidiary’s commercial and residential loan portfolios, and failed to set aside adequate reserves for the losses that RJF knew, or recklessly disregarded, were forthcoming. On April 14, 2009, RJF shocked investors when it announced that results for the second fiscal quarter ended March 31, 2009, would be well below the consensus analysts’ estimates. RJF also announced that both its commercial and residential portfolios would require higher loss reserves, with the loan loss provision tripling from the previous quarter. In response to such an unexpected sharp increase in loan loss provisions, investors sent RJF shares plummeting. RJF closed down $2.57 per share, or 13.48%, to close at $16.49 per share on April 15, 2009 on unusually high volume. Over the next few days, RJF’s stock price traded as low as under $15 per share, well below its Class Period highs of over $38 per share.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired RJF common stock between April 22, 2008 and April 14, 2009, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the “Join Lawsuit” section of our website at:
If you purchased RJF securities during the Class Period, you may, not later than August 10, 2009, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact: