We’ll start to post these as we see them, courtesy of the Stanford Securities Class Action Clearinghouse securities.stanford.edu/ DIGITAL LAW PROJECT Stanford University Law School.
7.- BankUnited Financial Corporation
Ticker Symbol: BKUNAMarket: NASDAQ
Class Period: 4/18/2008 – 6/18/2008
Court: S.D. Florida
Date of filing: 9/16/2008
Plaintiff Firm: Coughlin Stoia Geller Rudman & Robbins LLP (Florida)
SIC Code: 6035
Sector Classification: Financial
Industry Classification: S&Ls/Savings Banks
Summary: According to a law firm press release, the complaint charges BankUnited and certain of its officers and directors with violations of the Securities Exchange Act of 1934. BankUnited is the holding company for BankUnited, FSB, which provides consumer and commercial banking products and services to consumers and businesses located primarily in Florida.The complaint alleges that during the Class Period, defendants made false and misleading statements about BankUnited. Specifically, defendants misrepresented: (a) the losses the Company was likely to suffer due to BankUnited’s poor underwriting standards, which losses would occur once interest rates reset on the billions of dollars of pay-option arms (adjustable rate mortgages where borrowers had the ability to choose their payment amount during the initial period of the loan); (b) BankUnited’s sketchy appraisal process, which permitted borrowers to obtain mortgages in excess of their ability to pay and in excess of the value of the underlying property; and (c) BankUnited’s policies with regard to “piggy-back” loans, which are essentially second mortgages made at the time a home is purchased to fund a down payment. When the truth began to come to light, BankUnited’s stock price plunged, damaging innocent investors.
Sept. 22, 2008.
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