NEW YORK, June 13, 2014 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against Doral Financial Corporation ("Doral" or the "Company") (NYSE: DRL) and certain of its officers. The class action, filed in United States District Court, District of Puerto Rico, and docketed under 3:14-cv-01414, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Doral securities between April 2, 2012 and May 1, 2014 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Doral securities during the Class Period, you have until July 14, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Doral was organized in 1972 under the laws of the Commonwealth of Puerto Rico and operates as a bank holding company. Doral's principal operations are conducted in Puerto Rico, with growing operations in the United States, specifically in the New York City metropolitan area, as well as in northwest and south Florida.
The Complaint alleges that throughout 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 understated its loan reserves; and (c) as a result of having understated its loan loss reserves, 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.