PHILADELPHIA-April 29, 2005- LAWFUEL – The Law News Network – Goldman Scarlato & Karon, P.C., a law firm with offices in Philadelphia, PA and Cleveland, OH, 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 R&G Financial Corporation (“R&G Financial” or the “Company”) (NYSE: RGF – News) between April 21, 2003 and April 25, 2005, inclusive, (the “Class Period”). The lawsuit was filed against R&G Financial, Victor J. Galan and Joseph R. Sandoval (“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 June 27, 2005 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 the Company failed to disclose or misrepresented that R&G Financial’s earnings quality was poor due to the use of overly aggressive assumptions to generate gain-on-sale income, as well as to the value it retained in its interest-only residuals in securitization transactions, that the methodology used to calculate the fair value of the residual retained interests was incorrect and caused the Company to overstate its financial results by at least $50 million and as such its financial results were not prepared in accordance with Generally Accepted Accounting Principles.
On April 25, 2005, after the market closed, R&G Financial announced that it would restate its financial results for the fiscal years 2003 and 2004. Shares of R&G Financial fell dramatically in reaction to the news, shedding $8.14 per share, or 35.1% to close at $15.04 on very heavy trading volume. On that date the Company also announced that the SEC had launched an informal probe of the Company.
If you bought R&G Financial securities between April 21, 2003 and April 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.
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Contact:
The Law Firm of Goldman Scarlato & Karon, P.C.
Mark S. Goldman, Esq., 888-753-2796
