NEW YORK, March 13, 2009 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of Corus Bankshares, Inc. ("Corus" or the "Company") (Nasdaq:CORS) common stock during the period from January 25, 2008 to January 30, 2009 (the "Class Period") for violations of the federal securities laws.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Corus securities during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so May 11, 2009. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
The complaint alleges that Corus' press releases, SEC filings and other public statements during the Class Period were false and misleading for failing to disclose: (i) that Corus was failing to recognize losses on its condominium loans as required by accounting rules, and (ii) that Corus was purchasing condominiums in developments Corus had financed in an attempt to: (a) inflate the appraised values of condominiums to delay having to recognize losses on financing for such condominiums; (b) inflate developers' sales figures to increase the likelihood of successful future sales; and (c) create the illusion of successful sales histories in order to inflate appraisal values for the condominiums to ensure inflated future prices for the condominiums.
On January 30, 2009, Corus released poor financial results for fiscal 2008 stemming from the adverse business practices it had concealed. Upon this announcement, Corus' shares fell nearly 47% to close at $.59 per share on February 2, 2009, on heavy trading volume.