NEW YORK, July 27, 2004 (PRIMEZONE) -- Abbey Gardy, LLP commenced a Class Action lawsuit in the United States District Court for the District of New Jersey on behalf of a class (the "Class") of all persons who purchased or acquired securities of Commerce Bancorp, Inc. ("Commerce" or the "Company") (NYSE:CBH) between June 18, 2002 and June 30, 2004 inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint names as defendants Commerce and Vernon W. Hill ("Hill"). The complaint alleges that throughout the Class Period defendants made a series of material misrepresentations and omissions in Commerce's press releases, public filings and conference calls. Recently, a criminal indictment was filed in U.S. District Court for the Eastern District of Pennsylvania against a number of individuals including, among others, Ronald A. White, a director of Commerce PA, Glenn K. Holck, president of Commerce PA and Stephen M. Umbrell, regional vice president of Commerce PA ("Indictment").
The federal investigation leading up to this Indictment was never disclosed by Commerce in its SEC filings. This Indictment has arisen from actions taken by Commerce and/or its subsidiaries' employees, officers and directors to gain favor and, subsequently, business from the City of Philadelphia. The aggressive expansion of business by Commerce as well as the actions undertaken by these employees, officers and/or directors violated not only the Company's Codes of Ethics and Conduct, but also the federal securities laws. Not disclosed was that throughout 2002, and until October 2003, Commerce Bank paid $15,000 a month to Ronald A. White apart from his compensation for serving on the Board, and made other payments to favor his interest. For 2002, Commerce paid White $182,000. In return for this compensation White directed Corey Kemp, City of Philadelphia treasurer, to award financial services and contracts to Commerce PA and Commerce Capital on Commerce Bank's behalf. Additionally, during this time period, Commerce waived certain conditions on loans and made loans on favorable terms. Additionally, during this time period, Commerce made numerous campaign contributions and provided other remuneration to public officials and political candidates. Banks are barred from donating money to elected officials who oversee municipal bond deals, but Commerce controls a Political Action Committee, which contributed hundreds of thousands of dollars to numerous politicians and government officials. As a result of these disclosures, as well as the indictment on June 30, 2004, Commerce stock went tumbling from a close on June 28 of $64.46 a share to a close on June 29 of $61.15, and on June 30 of $55.01.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Commerce securities during the Class Period. If you purchased or otherwise acquired Commerce securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Commerce securities during the Class Period, you may, no later than August 31, 2004 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
Susan Lee or Nancy Kaboolian, Esq. Abbey Gardy, LLP 212 East 39th Street New York, New York 10016 (212) 889-3700 (800) 889-3701 (Toll Free) Or e-mail Susan Lee at slee@abbeygardy.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.