This is a securities class action lawsuit against National City Corp.
National City was a $150 billion mortgage lender whose core business included mortgage financing and servicing, consumer finance and asset management. National City's residential real estate loans were primarily comprised of construction loans, home equity loans and run-off subprime loans.
On January 22, 2008, National City announced the sale of the 4.0% Convertible Senior Notes Due 2011. National City subsequently issued a press release on January 24, 2008, announcing the pricing of the 4.0% Convertible Senior Notes Due 2011at an aggregate principal amount of $1.25 billion.
In the offering documents associated with the 4.0% Convertible Senior Notes Due 2011, National City, allegedly, misstated material facts of its business including the quality of approximately $20 billion of National City's residential real estate loans and the sufficiency of National City's reserves for the known risks of those loans. Such misrepresentations were contained in National City's quarterly and annual reports, filings with the Securities and Exchange Commission, as well as the Prospectus Supplement, which was issued to investors in connection with the offering of the 4.0% Notes on or about January 23, 2008.
As a result of these and other corrective disclosures, the price of the Company's 4.0% Notes fell a total of $607.70 per Note, or 57%, from the initial Offering price of $1060.20 per Note on January 29, 2008 to $452.50 per Note on September 30, 2008
Name (Stock Symbol)
National City Corporation
National City Corporation was a bank.
National City Corporation was merged with and into The PNC Financial Services Group, Inc. on December 31, 2008.
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