CONSHOHOCKEN, Pa. LAWFUEL – The Law News Network – Nov. 4, 2005–Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired publicly traded securities of First BanCorp (“First BanCorp” or the “Company”) (NYSE:FBP) between October 20, 2003 and August 25, 2005, inclusive, (the “Class Period”). The lawsuit was filed against First BanCorp, Angel Alvarez-Perez and Annie Astor-Carbonell (“Defendants”).
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at [email protected] and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than January 2, 2006 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that during the Class Period Defendants concealed material adverse information including: (1) that the Company’s financial statements were materially false and misleading because the Company had inappropriately accounted for mortgage loans between 2000 and 2004; (2) that the Company’s purportedly strong financial results were a direct result of accounting fraud; (3) as a result, the Company’s published financial results were not prepared in accordance with Generally Accepted Accounting Principles.
On August 25, 2005, First BanCorp issued a press release indicating that it had received a letter from the SEC indicating that the agency had opened an informal investigation into the Company’s accounting for mortgage loans purchased from two other financial institutions. Shares reacted negatively to the news, falling approximately 9% to $18.26 per share the following day. On September 30, 2005, the Company announced that its CEO and CFO had suddenly resigned. Shares once again reacted negatively, trading approximately 8% lower to close at $15.56 on Monday October 3, 2005. Then on October 21, 2005, the SEC upgraded its probe of the Company to a formal investigation.
If you bought First BanCorp securities between October 20, 2003 and August 25, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 753-2796 to speak with an advisor.