NEW YORK, April 10, 2009 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") has filed a class action lawsuit in the United States District Court, Northern District of Illinois, Eastern Division (1:09-cv-02154), against Corus Bankshares, Inc. ("Corus" or the "Company") (Nasdaq:CORS) and certain officers of the company. The class action was filed on behalf of purchasers of the securities of the Company during the period from January 25, 2008 to January 30, 2009, both dates inclusive, (the "Class Period"). The complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated there under.
Corus provides consumer and corporate banking products and services through its wholly-owned banking subsidiary, Corus Bank, N.A., which focuses on two mail business activities -- commercial real estate lending and deposit gathering. The complaint alleges that during the class period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects.
The complaint specifically alleges: (1) that Corus and/or an entity affiliated with the Company had been purchasing units in condominium developments that Corus had financed; (2) that the Company had done so to manipulate sales figures for Corus financed developments; (3) that, as such, Corus was artificially inflating the appraisal values for Corus financed condominium units and developments; (4) that the Company had inflated appraisal values to delay recognizing losses on Corus financed condominium developments; (5) that, as a result of the foregoing, Corus was failing to recognize losses and/or improperly recognizing losses on its condominium loans in accordance with Generally Accepted Accounting Principles ("GAAP"); (6) that Corus had been negotiating with the Federal Reserve Bank of Chicago and the Office of the Comptroller of Currency regarding its deteriorating pool of condominium loans; and (7) that the Company lacked adequate internal and financial controls.
On January 30, 2009, Corus shocked the market when it reported a widened 2008 fiscal fourth quarter net loss of $261 million, or $4.85 per share, compared to a net loss of $128 million in the 2008 fiscal third quarter and net income of $2 million in the 2007 fiscal fourth quarter, and revealed that the Company's nonperforming assets, including non-accrual loans and repossessed real estate, had increased to $2 billion at the end of 2008, more than double the level from the previous quarter. On this news, shares of Corus declined $0.52 per share, or 46.85%, to close on February 2, 2009 at $0.59.
If you purchased or acquired the securities of Corus during the class period, you have until May 11, 2009 to ask the Court to appoint you as lead plaintiff for the class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may join the action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago, Washington, D.C., Columbus, Ohio and the San Francisco Bay area, 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.