ENGLEWOOD CLIFFS, N.J., June 11, 2009 (GLOBE NEWSWIRE) -- The law firm of Gardy & Notis, LLP filed a securities fraud class action lawsuit on behalf of all investors who purchased or otherwise acquired Raymond James Financial, Inc. (NYSE:RJF) common stock between April 22, 2008 and April 14, 2009. The lawsuit was filed in the United States District Court for the Southern District of New York, and charges defendants Raymond James Financial, Thomas A. James (CEO) and Jeffrey P. Julien (CFO) with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Securities Exchange Act and SEC Rule 10b-5.
The lawsuit alleges that defendants repeatedly touted its supposedly conservative management practices and avoidance of risky assets associated with subprime residential mortgages. Defendants, however, failed to disclose that Raymond James Financial understated the credit risks of its wholly owned subsidiary's commercial and residential loan portfolios, and failed to set aside adequate reserves for the losses that Raymond James Financial knew, or recklessly disregarded, were forthcoming. On April 14, 2009, Raymond James Financial shocked investors when it announced that results for the second fiscal quarter ended March 31, 2009, would be well below the consensus analysts' estimates. Raymond James Financial also announced that both its commercial and residential portfolios would require higher loss reserves, with the loan loss provision tripling from the previous quarter. In response to such an unexpected sharp increase in loan loss provisions, Raymond James Financial common stock dropped $2.57 per share, or 13.48%, to close at $16.49 per share on April 15, 2009.
If you purchased or acquired Raymond James Financial common stock between April 22, 2008 and April 14, 2009, you may, no later than August 10, 2009, move and request that the Court appoint you as lead plaintiff. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff.
To learn more about the lawsuit, please contact Charles Germershausen at Gardy & Notis, LLP, by telephone at 201-567-7377, or by email at cgermershausen@gardylaw.com. A copy of the complaint filed in the lawsuit is available from the court or by contacting Gardy & Notis, LLP.
Attorney advertising.