engaged in improper behavior which harmed Sterling’s investors by failing to disclose the extent of seriously delinquent commercial real estate loans and construction and land loans.
Coral Gables, Florida (Vocus) December 17, 2009
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) makes an announcement to all Sterling Financial Corp investors concerning the class action lawsuit (Case No. 09 CV 00368) filed on December 11, 2009, in the United States District Court for the Eastern District of Washington. The class action lawsuit was filed on behalf of investors in Sterling Financial Corp. (“Sterling”) shareholders who suffered investment losses during the class period from July 23, 2008 through January 13, 2009. The class action alleges Sterling, “engaged in improper behavior which harmed Sterling’s investors by failing to disclose the extent of seriously delinquent commercial real estate loans and construction and land loans.” The lawsuit further alleges Sterling “failed to adequately and timely record losses for its impaired loans, causing its financial results and its Tier 1 capital ratio to be materially false.” Prospective class members should consider whether an individual securities arbitration claim filed with the Financial Industry Regulatory Authority, (FINRA) is more effective than a class action for recovery of their investment losses in Sterling.
Many investors were advised by their financial advisors that an investment in Sterling was a suitable investment. In some instances, individuals invested a disproportionate amount of their net worth in Sterling stock which resulted in a concentrated position which may have exposed investors to unnecessary and uncompensated risk. Brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice in accordance with the FINRA Sales Practice Rules and Regulations. Recommendations of unsuitable investments and/or maintaining an unprotected concentrated investment in the financial sector are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA. Furthermore, an individual securities arbitration claim may allow investors to claim larger losses in Sterling based on higher share prices that prevailed prior to the class period.
The Securities Law Firm of Tramont Guerra & Nunez, PA is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $100,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.