Carney Williams PLLC Files Shareholder Lawsuit Against PrivateBancorp Inc.By Avik, Gaea News Network
Wednesday, December 22, 2010
Carney Williams Bates Bozeman & Pulliam, PLLC announces that December 21, 2010, is the deadline for shareholders of PrivateBancorp, Inc. who purchased stock between November 2, 2007 and October 23, 2009, to inform the court of their intention to be appointed lead plaintiff in the shareholder lawsuit against the company. For more information about the investor lawsuit against PrivateBancorp contact attorneys, Darrin Williams firstname.lastname@example.org or Randy Pulliam (email@example.com) or call toll-free at 1-888-551-9944.
A shareholder lawsuit has been filed in the Northern District of Illinois on behalf of purchasers of PrivateBancorp, Inc. common stock between November 2, 2007 and October 23, 2009. The Company, certain senior executives, directors, the underwriters of PrivateBancorp’s 2008 and 2009 offerings, and its independent auditor are alleged to have violated federal securities laws by issuing false and misleading statements about the Company’s business and financial results.
The action against PrivateBancorp alleges that it concealed from investors the truth about the Strategic Growth and Transformation Plan (”Growth Plan”), which the Company credited for more than doubling its loan portfolio to over $12 billion in less than three years. However, according to the complaint, PrivateBancorp officials routinely sacrificed loan quality for quantity under the Growth Plan. Specifically, the complaint alleges that PrivateBancorp artificially inflated the Company’s stock price by misleading investors about the Company’s exposure to delinquent and nonperforming loans, the adequacy of loan loss reserves and the amount of write-offs needed to address the Company’s growing asset quality concerns. While concealing the truth from investors and through the use of materially false and misleading offering materials, the Company raised hundreds of millions of dollars from investors in two registered public offerings in 2008 and 2009.
In October of 2009, PrivateBancorp shocked investors when it reported third quarter earnings far below expectations. Further, the Company finally revealed the true nature of its loan quality under the Growth Plan when it announced that it held almost $400 million in nonperforming loans as of the third quarter of 2009. In response to these disclosures Private Bancorp stock price dropped by more than 37%.
If you own shares of PrivateBancrop, strict deadlines may affect your rights. For more information about this lawsuit and your legal rights, contact, Darrin Williams or Randy Pulliam or toll free at 1-888-551-9944.