The company says it's entitled to a $229.9 million tax refund from the Puerto Rican government after restating its earnings from 1998 to 2004 as part of a deal with the government, according to Bloomberg. The treasury department of Puerto Rico voided the deal, saying that Doral obtained it through fraud.
Doral General Counsel Enrique Ubarri told Superior Court Judge Laureana Perez that the company's refund agreement numbers "are correct," saying he reviewed the figured with Doral's CEO.
Puerto Rico's justice department said that witnesses "established that Doral's representations were incorrect and that the amount claimed by the plaintiff is not supported by the evidence."
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 several weaknesses, 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."