Company: Popular, Inc.
Ticker Symbol: BPOP
Class Period: Jan-23-08 to Jan-22-09
Date Filed: May-14-09
Lead Plaintiff Deadline: Jul-13-09
Court: United States District Court for the District of Puerto Rico
A class action has been commenced in the United States District Court for the District of Puerto Rico on behalf of purchasers of the securities of Popular, Inc. ("Popular” or the "Company”)(NASDAQ:BPOP) between January 23, 2008 and January 22, 2009, inclusive (the "Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act”).
The complaint charges Popular and certain of its officers with violations of the Exchange Act. Popular, through its subsidiaries, offers a range of retail and commercial banking products and services in Puerto Rico and the United States.
The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose the following adverse facts, among others: (i) that the Company’s deferred tax assets related to its U.S. operations were materially overstated; (ii) that the Company was experiencing increasing loan losses in Puerto Rico and the U.S. construction sectors; (iii) that the quality of the Company’s remaining mortgage-related loans in its U.S. mainland portfolios and other assets were deteriorating and were materially overstated; (iv) that the Company was experiencing a higher percentage of non-performing loans; (v) that the Company’s new loan originations were declining; and (vi) as a result of the foregoing, the Company would soon be facing liquidity concerns and would be forced to cut or eliminate paying a dividend to shareholders.
On January 22, 2009, Popular announced its financial results for the fourth quarter and year end of 2008, the period ended December 31, 2008. For the quarter, the Company reported a net loss of $702.9 million, citing to a higher provision for loan losses, among other things. In response to this announcement, shares of the Company’s common stock fell $2.52 per share, or 50%, to close at $ 2.46 per share, on heavy trading volume.