NEW YORK (TheStreet) --Shares of Doral Financial (DRL) are falling by -13.40% to $7.24 in morning trading on Tuesday after the company announced it failed to resolve a tax dispute with the Treasury Department of Puerto Rico, MarketWatch reports.
The mortgage banking company and the Treasury Department will go to court from Sept. 16 to Sept. 18 in order to settle a lawsuit filed by Doral, in which the company sought to collect $229 million it said the Treasury Department owed from a 2012 closing agreement between the two entities.
Doral and the Treasury Department attempted to negotiate out of court but the negotiations broke down on Monday as they could not reach an agreement, MarketWatch added.
Separately, TheStreet Ratings team rates DORAL FINANCIAL CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate DORAL FINANCIAL CORP (DRL) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."