The San Bernardino Sun Reports on Securities Class Action Filed by Robbins Umeda LLP’s* Shareholder Client
On April 21, 2011, California-based newspaper The San Bernardino Sun reported that a shareholder of 1st Centennial Bancorp, represented by Robbins Umeda LLP, filed a securities class action lawsuit against certain former officers and directors of the company for violating the Securities Exchange Act of 1934.
The article details the allegations in the securities class action complaint, including that certain of 1st Centennial’s former officers and directors made materially false and misleading statements in press releases and filings with the U.S. Securities and Exchange Commission regarding the company’s financial health and business prospects during the period from April 2006 to January 2009. The complaint alleges these statements omitted details regarding the bank’s exposure to the risky commercial real estate, acquisition, development, and construction loan markets and omitted details regarding the bank’s loan underwriting and credit administration practices, including its compliance with prudent banking standards and lending policy. The article also points out that the lawsuit alleges 1st Centennial approved loans based on outdated appraisal information and borrower financial statements, and issued loans to borrowers with suspect credit and inadequate collateral.
1st Centennial, a bank holding company incorporated and headquartered in Redlands, California, operated six branches and three loan production offices until it was shut down in January 2009. The FDIC was named receiver.
The case is Short v. Dondanville, et al., No. ED CV 11-00615 VAP (OPx), in the U.S. District Court for the Central District of California, Eastern Division.
To view the article on The San Bernardino Sun’s website, click here.
Note: This link is provided for educational and public interest purposes only. It does not constitute an endorsement of Robbins Umeda LLP by the author or publisher.
* The firm name changed from Robbins Umeda LLP to Robbins Arroyo LLP on January 1, 2013.