HARTFORD, Conn., Nov. 5, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Washington on behalf of all persons who purchased the common stock of WSB Financial Group, Inc. ("WSB" or the "Company") (Nasdaq:WSFG) pursuant to its December 14, 2006 Initial Public Offering ("IPO") through October 23, 2007, inclusive (the "Class Period").
The Complaint charges that WSB and certain of its officers, directors and underwriters violated federal securities laws by including, or allowing the inclusion of, materially false and misleading statements in the Registration Statement and Prospectus issued in connection with the IPO. Specifically, WSB's registration statement for the IPO failed to disclose that it had been violating certain banking laws and regulations relating to the origination, administration and monitoring of construction and mortgage loans. Due to the company's misleading statements the WSB stock traded as high as $21 per share during the Class Period.
Beginning in September of 2007 a series of announcements and investigations into the company's lending practices caused the WSB stock to decline. In late September the company announced that due to the reduced demand of mortgage loans in the market 33 jobs would be eliminated in the mortgage division of the company, and that WSB's executive vice president of sales and lending at Westsound Bank was terminated. On this news, the stock price fell from $15.30 to $12.40. Finally, the company announced that state and federal regulators were looking into possible fraud and misconduct in its real estate lending practices. Within two days of this announcement the company's stock dropped nearly 60%, from $11.20 on October 24, 2007 to $4.73 on October 25, 2007.
If you are a member of the class, you may, no later than December 31, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.