HARTFORD, Conn., Jan. 24, 2008 (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 Northern District of Ohio on behalf of all persons who purchased the common stock of National City Corporation ("National City" or the "Company") (NYSE:NCC) during the between April 30, 2007 and January 2, 2008 (the "Class Period").
The Complaint charges that National City and certain of its officers and directors violated federal securities laws. The Complaint alleges that National City, a financial holding company, that provides commercial and retail banking, mortgage financing and servicing, consumer finance, and asset management services, issued materially false and misleading statements regarding its financial results. Specifically, Defendants concealed the following: (i) the subprime mortgages on National City's books were a much bigger risk to the Company's financial position than represented; (ii) National City was failing to adequately reserve for mortgage-related exposure, causing its balance sheet and financial results to be artificially inflated; and (iii) Defendants had no reasonable basis to make favorable predictions about the Company's future dividend payments and future financial performance given the problems in the business.
In October 2007, National City announced a big decline in earnings due to losses related to its mortgage business but assured the market about the dividend. Then, on January 2, 2008, the Company announced a 49% reduction in its quarterly dividend to $0.21 per share from $0.41 per share. On this news, National City's stock dropped from $16.46 per share close at $15.59 per share on January 2, 2008. During the Class Period, National City stock traded above $30 per share.
If you are a member of the class, you may, no later than March 24, 2008, 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.