Milberg Weiss Announces The Filing Of A Class Action Suit Against Doral Financial Corp. and Certain Of Its Officers and Directors on Behalf of Investors.
The action is pending in the United States District Court for the District of Puerto Rico against defendants Doral Financial Corporation, Salomon Levis, Zoila Levis, Mario Levis, Richardo Melendez, Richard Bonini, and Edgar M. Cullman.
The Complaint alleges that Defendants orchestrated a massive accounting fraud through which they improperly valued the Company's Interest Only Strips ("IOs") and misled investors as to the Company's vulnerability to interest rate increases. Throughout the Class Period, defendants issued highly positive statements in an effort to create the impression that earnings were increasing and that the value of Doral's mortgage portfolios was robust. In reality, the Company employed a static measure, instead of a forward curve measure, to calculate the value of its LIBOR sensitive IOs. The Company now admits that this practice resulted in false and misleading results, results the Company now intends to restate. According to its April 18, 2005 press release, the Company's annual and interim financial reports for 2000-2004 are materially false and misleading requiring restatement because of the Company's improper accounting treatment of the IOs. During the Class period, while the investing public was deceived, defendants sold 579,750 shares for personal proceeds of $20.5 million and completed numerous necessary debt offerings. The Company has also announced that it is not only restating five years of financial statements, but its accounting practices are the subject of an informal SEC investigation. The Company's stock has plummeted 66% from its January 18, 2005 close to its close on April 18, 2005 at $16.92.
If you bought the securities of Doral between April 9, 2002 and April 18, 2005 and sustained damages, you may, no later than June 20, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad & Schulman LLP (www.milbergweiss.com) has over 100 lawyers in offices in New York City, Boca Raton, Los Angeles, Delaware, Seattle and Washington, D.C. and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for nearly 40 years. Please contact the Milberg Weiss website for more information about the firm and its history. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
Steven G. Schulman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Email: email@example.com Or Maya Saxena Joseph E. White III Ariel Acevedo 5200 Town Center Circle, Suite 600 Boca Raton, FL 33486 Phone number: (561) 361-5000 Email: firstname.lastname@example.org email@example.com firstname.lastname@example.org Website: http://www.milbergweiss.com
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|Date:||Apr 22, 2005|
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