NEW YORK (TheStreet) -- Shares of Doral Financial Corp. (DRL) are lower by 7.66% to $4.22 at the start of trading on Tuesday morning, following reports suggesting Puerto Rico is preparing to file an appeal, by Friday, relating to the ongoing legal dispute between the U.S. territory and the lender.
In October, a judge in Puerto Rico ruled in favor of Doral in its fight with the commonwealth's treasury department regarding a $229 million tax dispute, Reuters reports.
The judge gave Puerto Rico 60 days to file an appeal, the deadline will expire January 2.
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The treasury said it will use "all legal options available" in order to appeal the judge's decision, Reuters noted.
On Monday Doral shares surged 27% on trading volume that was greater than three times its daily average over the past 25 days, Reuters 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 multiple 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."