NEW YORK, June 13, 2014 /PRNewswire/ -- Pomerantz LLP has
filed a class action lawsuit against Doral Financial
Corporation ("Doral" or the "Company") (NYSE: DRL) and certain
of its officers. The class action, filed in United States
District Court, District of Puerto
Rico, and docketed under 3:14-cv-01414, is on behalf of a
class consisting of all persons or entities who purchased or
otherwise acquired Doral securities between April 2, 2012 and May 1,
2014 both dates inclusive (the "Class Period"). This class
action seeks to recover damages against Defendants for alleged
violations of the federal securities laws pursuant to Sections
10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule
10b-5 promulgated thereunder.
If you are a shareholder who purchased Doral securities during
the Class Period, you have until July 14,
2014 to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
Doral was organized in 1972 under the laws of the Commonwealth
of Puerto Rico and operates as a
bank holding company. Doral's principal operations are conducted in
Puerto Rico, with growing
operations in the United States,
specifically in the New York City
metropolitan area, as well as in northwest and south Florida.
The Complaint alleges that throughout the Class Period,
Defendants issued materially false and misleading statements
regarding the Company's financial performance and future prospects
and failed to disclose adverse facts, including that: (a) the
Company had a material weakness in its internal controls over
financial reporting and disclosure controls, and that such controls
were ineffective; (b) the Company had understated its loan
reserves; and (c) as a result of having understated its loan loss
reserves, the Company's assets were overstated, its expenses were
understated, its net income was overstated, and Doral Bank did not
meet its Tier I regulatory capital requirements as stated
throughout the Class Period.
On March 18, 2014, Doral notified
the SEC that it was unable to timely file its annual financial
report for fiscal 2013. On this news, the price of Doral
common stock dropped more than $1 per
share, closing down at $11.17 per
share on March 18, 2014, from its
close the prior evening of $12.30 per
share.
On Friday March 21, 2014, after
the close of trading, Doral issued a press release and filed its
annual financial report with the SEC on Form 10-K, for the period
ended December 31, 2013. On
this news, the price of Doral common stock declined from its close
of $11.55 per share on the evening of
March 21, to close at $10.76 per share on Monday, March 24th.
On May 1, 2014, the Company
announced that it has been advised by the Federal Deposit Insurance
Corporation (the "FDIC") that the bank could not include some or
all of its tax receivables from the Puerto Rican government in its
calculation of Tier 1 capital. Puerto Rico tax receivables accounted for
$289 million of the bank's
approximately $679 million of Tier 1
Capital as of December 31,
2013. On this news, shares of Doral fell $6.09, or more than 62%, on intraday trading to
$3.73, on unusually heavy trading
volume on May 2, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
SOURCE Pomerantz LLP