DENVER, June 11, 2008 (PRIME NEWSWIRE) -- Dyer & Berens LLP (www.DyerBerens.com) announced today that a proposed class-action lawsuit on behalf of persons who purchased or otherwise acquired the common stock of Franklin Bank Corp. ("Franklin Bank" or the "Company") (Nasdaq:FBTX) between April 26, 2007 and May 1, 2008 (the "Class Period") was filed in the United States District Court for the Southern District of Texas.
If you purchased or acquired the common stock of Franklin Bank during the Class Period, you may, no later than August 5, 2008, request that the Court appoint you as a lead plaintiff for the Class. A lead plaintiff is a class member that acts on behalf of other investors 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.
For a free consultation regarding your rights and interests with respect to the pending lawsuit, you may contact Jeffrey A. Berens of Dyer & Berens LLP at (888) 300-3362 or (303) 861-1764, or via email at jeff@dyerberens.com.
In the complaint, the plaintiff alleges that Franklin Bank and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding the Company's business and financial results. Specifically, the plaintiff contends that, during the Class Period, the defendants concealed that: (i) Franklin Bank's assets contained tens of millions of dollars worth of impaired and risky securities; (ii) defendants failed to properly account for Franklin Bank's mortgage-related assets; (iii) defendants had not properly accounted for single family loans serviced by third parties that became delinquent; and (iv) Franklin Bank's call reports filed with the FDIC beginning with the September 2007 quarter, at the latest, and its Form 10-Q for the September 2007 quarter were in error due to the Company's failure to properly account for losses on mortgage loans and residential real estate owned properties.
While Dyer & Berens LLP has not at this time filed a complaint against the defendants, it specializes in complex class action litigation on behalf of injured investors throughout the nation. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. For more information about the firm, please go to www.DyerBerens.com.