NEW YORK, July 4, 2014 /PRNewswire/ -- Faruqi &
Faruqi, LLP, a leading national securities law firm, reminds
investors in Doral Financial Corporation ("Doral" or the "Company")
(NYSE: DRL) of the July 14, 2014
deadline to seek the role of lead plaintiff in a federal securities
class action lawsuit filed against Doral and certain
executives.
A complaint has been filed in the District of Puerto Rico on behalf of all persons who
purchased Doral common stock between April
2, 2012 and May 1, 2014 (the
"Class Period").
The complaint alleges that the Company and its executives
violated federal securities laws with respect to its disclosures
concerning its business, operations, and prospects.
The complaint further alleges that, during the Class Period,
defendants issued materially false and misleading statements
regarding the Company's financial performance and future prospects
and failed to disclose adverse facts, including that: (a) the
Company had a material weakness in its internal controls over
financial reporting and disclosure controls, and that such controls
were ineffective; (b) the Company had under-reserved for loan
losses; (c) as a result of having under-reserved for loan losses,
the Company's assets were overstated, its expenses were
understated, its net income was overstated, and Doral Bank did not
meet its Tier I regulatory capital requirements as stated
throughout the Class Period and as required by bank regulators to
operate the bank; and (d) as a result of the foregoing, defendants
knew Doral Bank was undercapitalized and the Company was not on
track to achieve the financial results they had led the market to
expect during the Class Period.
On March 21, 2013, Doral issued a
press release and filed its annual financial report on Form 10-K
for the period ended December 31,
2013, disclosing that the Company had been forced to take an
increased provision for loan and lease losses in the fourth quarter
of 2013, and as a result, the Company was reporting a net loss for
its 2013 fourth quarter. In addition, the Company stated that it
would be forced to restate its previously reported financial
statements. On this news, the price of Doral common stock declined.
Then on May 1, 2014, after the close
of trading, the Company filed a Current Report on Form 8-K with the
Securities and Exchange Commission disclosing that the Puerto Rican
government was disputing whether a purported tax receivable due
Doral, which accounted for $289
million of the bank's $679
million of so-called Tier 1 capital as of the end of fiscal
2013, was indeed payable, and that the U.S. Federal Deposit
Insurance Corporation ("FDIC") had advised Doral that it could not
include the tax receivable in its Tier 1 capital ratio, rendering
the bank significantly undercapitalized. Doral further disclosed
that the FDIC had ordered Doral to revise its capital plan, which
it stated could force the Company to sell assets.
On this news, the price of Doral common stock, which had traded
as high as $25 per share in intraday
trading during the Class Period, fell to a level approximately 85%
from its Class Period high to close at $3.73 per share on May 2,
2014.
Request more information now by clicking here:
www.faruqilaw.com/DRL. There is no cost or obligation to
you.
Take Action
If you invested in Doral stock, bonds or options between
April 2, 2012 and May 1, 2014 and would like to discuss your legal
rights, visit www.faruqilaw.com/DRL. You can also contact us
by calling Richard Gonnello toll
free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to
rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages
anyone with information regarding Doral's conduct to contact the
firm, including whistleblowers, former employees, shareholders and
others.
Faruqi & Faruqi, LLP is a national law firm which represents
investors and individuals in class action litigation. The
firm is focused on providing exemplary legal services in complex
litigation in the areas of securities, shareholder, antitrust and
consumer litigation, throughout all phases of litigation. The
firm has an experienced trial team which has achieved significant
victories on behalf of the firm's clients. To keep track of the
latest securities litigation news, follow us on Twitter at
www.twitter.com/MergerActivity or on Facebook at
www.facebook.com/FaruqiLaw.
Attorney Advertising. The law firm responsible for this
advertisement is Faruqi & Faruqi, LLP
(www.faruqilaw.com). Prior results do not guarantee or
predict a similar outcome with respect to any future matter.
We welcome the opportunity to discuss your particular case.
All communications will be treated in a confidential manner.
FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello,
Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
Logo -
http://photos.prnewswire.com/prnh/20120119/MM38856LOGO
SOURCE Faruqi & Faruqi, LLP