DENVER, Feb. 10, 2009 (GLOBE NEWSWIRE) -- Dyer & Berens LLP today announced that it has initiated an investigation on behalf of purchasers of Colonial BancGroup, Inc. ("Colonial BancGroup" or the "Company") securities (NYSE:CNB) between December 2, 2008 and January 27, 2009. Dyer & Berens LLP believes that these investors have claims under the federal securities laws for losses associated with potential misrepresentations and/or omissions.
The investigation focuses on the Company's disclosures concerning its participation in the Troubled Asset Relief Program or "TARP." On December 2, 2008, Colonial BancGroup announced that it had received preliminary approval for $550 million in funding from the U.S. Treasury Department. In response, the Company's common stock price skyrocketed, increasing more than 50% per share. Then, on January 27, 2009, the Company shocked investors by belatedly disclosing that the TARP funding was actually contingent upon it increasing its equity by $300 million. Upon this disclosure, Colonial BancGroup's stock price plummeted more than 45%.
If you have information relevant to the investigation, or if you believe you were harmed by the conduct described above, you may contact Jeffrey A. Berens, Esq. at 1-888-300-3362, 303-861-1764 or via email at jeff@dyerberens.com.
Dyer & Berens LLP 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.