The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the District of Puerto Rico on behalf of purchasers of Doral Financial Corporation (“Doral” or the “Company”) (NYSE: DRL) common stock during the period between April 2, 2012 and May 1, 2014, inclusive (the “Class Period”).
If you have suffered a loss from investment in Doral common stock purchased on or after April 2, 2012 and held through the revelation of negative information during and/or at the end of the Class Period, , as described below, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or financial obligation, click here:
You may also request more information by contacting Brower Piven either by email at
or by telephone at (410) 415-6616. Attorneys at Brower Piven together have more than a century of experience litigating securities and other class action cases.
No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than July 14, 2014 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company units during the Class Period.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants’ failure to disclose during the Class Period that as a result of having under-reserved for loan losses, the Company, Doral Bank did not meet its regulatory capital requirements to operate the bank. According to the complaint, following the Company’s March 21, 2013 announcement that the Company had been forced to take an increased provision for loan and lease losses and that it would be forced to restate previously reported financial statements, and following the May 1, 2014 disclosure that its inability to include a large tax receivable in its capital ratio rendered the bank significantly undercapitalized such that the FDIC had ordered Doral to revise its capital plan, the value of Doral shares declined significantly.