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Franklin Bank may have misrepresented its financial condition to investors by understating non performing real estate assets.
Investigation Source (Case #08-cv-01810)
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- False And Misleading Statements
Product or Service
- Investments
Injury Type
- Monetary Loss
Investigation Details
This is a securities class action lawsuit against Franklin Bank and the Company's CEO and CFO.
The class action complaint alleges that Franklin Bank violated the Securities Exchange Act of 1934. Specifically, the complaint alleges that, during the Class Period, Franklin Bank engaged in a variety of accounting improprieties, including its admitted failure to charge off uncollectible loans and to mark Franklin's loans to market. As a result of the misconduct alleged, defendants understated Franklin Bank's delinquent, nonperforming, and uncollectible loans and thereby misrepresented Franklin's financial condition and results, including its overall and per-share profits and the fair market value of its residential mortgage loan portfolio.
The class action complaint alleges that Franklin Bank violated the Securities Exchange Act of 1934. Specifically, the complaint alleges that, during the Class Period, Franklin Bank engaged in a variety of accounting improprieties, including its admitted failure to charge off uncollectible loans and to mark Franklin's loans to market. As a result of the misconduct alleged, defendants understated Franklin Bank's delinquent, nonperforming, and uncollectible loans and thereby misrepresented Franklin's financial condition and results, including its overall and per-share profits and the fair market value of its residential mortgage loan portfolio.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| Franklin Bank Corporation | Franklin Bank Corporation operated a bank in Texas. On November 7, 2008, Franklin Bank, SSB, Houston, TX was closed by the Texas Department of Savings and Mortgage Lending. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. All deposit accounts have been transferred to Prosperity Bank, El Campo, TX. |