NEW YORK, July 13, 2009 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Northern District of Georgia on behalf of purchasers of Synovus Financial Corporation (NYSE:SNV) securities between January 24, 2008 to January 21, 2009, inclusive (the "Class Period") for violations of the federal securities 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 Synovus securities during the Class Period and wish to move the court for appointment of lead plaintiff, you must do so by September 4, 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 alleges defendants issued false and misleading statements about the company's business and financial results and failed to disclose the extent of its large exposure to Sea Island Company, a resort in Georgia, and the deteriorating condition of Sea Island. The Complaint further alleges that the company failed to adequately and timely record losses for its impaired loans, causing its financial results to be false.
As a result of defendants' false statements, investors purchased Synovus at inflated prices, reaching a high of $13.49 per share on February 1, 2008. Then, on January 22, 2009, Synovus reported a net loss for the fourth quarter of 2008 of $637 million, or $1.93 per share. The fourth quarter 2008 results included provision expense of $364 million and a $443 million non-cash goodwill impairment charge. On this news, Synovus stock fell to as low as $4.52 before it closed at $4.75 per share on January 22, 2009.