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 Middle District of Alabama on behalf of all persons or entities who purchased shares of The Colonial BancGroup, Inc. ("ColonialBanc" or the "Company") (NYSE:CNB) between December 2, 2008 and January 27, 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 ColonialBanc securities during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by April 10, 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 lawsuit alleges the Company violated the Securities Exchange Act of 1934 by making false and misleading statements to the public in its press releases and in its Securities and Exchange Commission filings. Specifically, the lawsuit alleges the Company misrepresented or failed to fully disclose the terms upon which it had received preliminary approval from the U.S. Treasury Department to receive $550 million under the Troubled Asset Relief Program ("TARP"). According to the complaint, the Company's misrepresentations and/or omissions caused its stock price to trade at artificially inflated prices in violation of federal law.
More information on this and other class actions can be found on the Class Action Newsline at www.globenewswire.com/ca/