NEW YORK, May 15, 2009 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the District of Puerto Rico on behalf of purchasers of Popular, Inc. ("Popular" or the "Company") (Nasdaq:BPOP) securities between January 23, 2008 and January 22, 2009, inclusive (the "Class Period") for violations of the federal security laws.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Popular, Inc. securities during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by July 13, 2009. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
The complaint charges Popular and certain of its officers with violations of the federal securities laws. Popular, through its subsidiaries, offers a range of retail and commercial banking products and services in Puerto Rico and the United States.
The complaint alleges that defendants failed to disclose material adverse facts related to the Company's true financial condition and prospects. This resulted in artificially inflated prices of the Company's common stock during the Class Period and a significant drop in the stock price when the Company announced its financial results for the fourth quarter and year end of 2008. Specifically, during the Class Period, the complaint alleges that defendants failed to disclose the following adverse facts, among others: (i) that the Company's deferred tax assets related to its U.S. operations were materially overstated; (ii) that the Company was experiencing increasing loan losses in Puerto Rico and the U.S. construction sectors; (iii) that the quality of the Company's remaining mortgage-related loans in its U.S. mainland portfolios and other assets was deteriorating and was materially overstated; (iv) that the Company was experiencing a higher percentage of non-performing loans; (v) that the Company's new loan originations were declining; and (vi) as a result of the foregoing, the Company would soon be facing liquidity concerns and would be forced to cut or eliminate paying a dividend to shareholders.
On January 22, 2009, Popular announced a net loss of $702.9 million for the fourth quarter, citing a higher provision for loan losses, among other things. As a result of the announcement, shares of the Company's common stock declined $2.52 per share, losing approximately 50% of their value.
Plaintiff seeks to recover damages on behalf of Popular investors.