Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Doral Financial Corporation (NYSE: DRL).
On May 1, 2014, Doral, the holding company for Doral Bank, which has operations in the United States and Puerto Rico, announced that it is in the process of developing a revised capital plan intended to enable the Company to remain in compliance with the requirements of its regulators. Among other things, this revised plan is intended to address a recent determination by the Federal Deposit Insurance Corporation (the “FDIC”) regarding the treatment of tax receivables from the Government of Puerto Rico, which represent approximately 43% of its assets. The FDIC ruled that Doral may no longer include in its calculation of its Tier 1 Capital some or all of the tax receivables from the Government of Puerto Rico. The revised plan “may include a sale of certain performing and non-performing assets and businesses and a modification of [Doral’s] capital structure.”
Since this news the price of Doral’s shares declined by over 60%.
KSF’s investigation is focusing on whether Doral and/or its officers and directors violated state or federal securities laws.
If you have information that would assist KSF in its investigation, or would like to discuss your legal rights, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis Kahn (
) or KSF Partner Melinda Nicholson (
) toll free at 1-877-515-1850.
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. KSF's lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders.