ATLANTA, April 7, 2003 (PRIMEZONE) -- Chitwood & Harley LLP announces that a class action lawsuit is pending in the United States District Court for the Southern District of Ohio, Western Division, against Fifth Third Bancorp ("Fifth Third" or the "Company") (Nasdaq:FITB), and certain of its officers. The suit was brought on behalf of purchasers of the publicly traded securities of Fifth Third Bancorp between September 21, 2001 and January 31, 2003, inclusive ("Class Period").
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between September 21, 2001 and January 31, 2003. The Complaint alleges, among other things, that Fifth Third issued press releases and filed financial reports with the SEC which represented that the Company had successfully and seamlessly integrated a large corporate acquisition (Old Kent) into its operations and further represented that its business was stronger than ever and that the Company would continue to grow and provide investment safety. According to the complaint, these statements were materially false and misleading because they failed to disclose that the Old Kent (and other) merger(s) seriously strained the Company's infrastructure, causing deficiencies in its internal controls and other business critical systems.
On September 10, 2002, the Company announced that it would be taking a $54 million after-tax ($81.8 million pre-tax) charge for impaired funds, resulting from a botched accounting reconciliation. According to the complaint, the Company played down the incident as a one time immaterial event, which was false and misleading because it was symptomatic of material, company-wide infrastructure deficiencies. On November 14, 2002 the Company revealed that the write-off had triggered investigations by banking regulators and the SEC. On January 31, 2003, the Company reported that banking regulators would likely take formal action against the Company, which would likely require Fifth Third to improve its internal controls, by among other things, adding personnel and processes. On February 3, 2003 the first trading day following the announcement, the price of Fifth Third common stock closed at $52.21 per share, a decline of 15% from the November 14, 2002 close of $62.53, the day Fifth Third first revealed that it was being investigated by banking regulators and the SEC.
Chitwood & Harley LLP is currently investigating these claims. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website, www.classlaw.com by clicking on Fifth Third. If you wish to serve as lead plaintiff in this action, you must file a motion to do so no later than May 27, 2003. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of his or her choice, or may choose to do nothing and remain an absent class member. A complaint is available from the court or can be emailed to you upon request.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley LLP, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca