| Company: | BankAtlantic Bancorp, Inc. |
| Ticker Symbol: | NYSE: BBX |
| Class Period: | November 9, 2005 to October 25, 2007 |
| Date Filed: | Oct-29-07 |
| Lead Plaintiff Deadline: | Dec-28-07 |
| Court: | Southern District, FL |
| Allegations: |
A class action lawsuit was filed on October 29, 2007 on behalf of purchasers of the securities of BankAtlantic Bancorp, Inc. ("BankAtlantic" or the "Company") (NYSE: BBX) between November 9, 2005 and October 25, 2007 (the "Class Period"). The action (Case No. 07-61542) was filed in the United States District Court for the Southern District of Florida.
The Complaint alleges that BankAtlantic, and certain of its officers and directors, violated the Securities Exchange Act of 1934. At the start of the Class Period, BankAtlantic touted its "negative provision for loan losses." Nevertheless, BankAtlantic materially understated reserves for real estate loan losses on its financial statements, and thus materially overstated net income. BankAtlantic gave a $27.8 million real estate loan without obtaining an independent appraisal of the real estate. The loan was granted to Michael Tringali, who worked together with Neil Mohamed Husani. The two men inflated land values and then flipped a series of properties in Florida to obtain higher real estate loans from several banks, including BankAtlantic. Husani and Tringali have been under FBI investigation for this scheme, which the Company either knew at the time or recklessly ignored.
BankAtlantic knew or recklessly ignored that the collateral underlying this $27.8 million loan -- vacant land in Manatee County, Florida -- was worth no more than $17.1 million. BankAtlantic deflected questions about the adequacy of its loan loss reserves for this property. BankAtlantic said it commissioned an "appraisal" of the property, but real estate experts questioned whether this appraisal had any basis. In April 2007, BankAtlantic announced that it was having difficulty with its Florida real estate portfolio but hid the true extent of the inadequacy of its loan loss reserves. On October 25, 2007, the Company announced that it had to increase its loan loss reserves substantially. The news sent BankAtlantic's shares down nearly 40%, from $7.45 to $4.72 on heavy trading volumes.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The Complaint alleges that BankAtlantic, and certain of its officers and directors, violated the Securities Exchange Act of 1934. At the start of the Class Period, BankAtlantic touted its "negative provision for loan losses." Nevertheless, BankAtlantic materially understated reserves for real estate loan losses on its financial statements, and thus materially overstated net income. BankAtlantic gave a $27.8 million real estate loan without obtaining an independent appraisal of the real estate. The loan was granted to Michael Tringali, who worked together with Neil Mohamed Husani. The two men inflated land values and then flipped a series of properties in Florida to obtain higher real estate loans from several banks, including BankAtlantic. Husani and Tringali have been under FBI investigation for this scheme, which the Company either knew at the time or recklessly ignored.
BankAtlantic knew or recklessly ignored that the collateral underlying this $27.8 million loan -- vacant land in Manatee County, Florida -- was worth no more than $17.1 million. BankAtlantic deflected questions about the adequacy of its loan loss reserves for this property. BankAtlantic said it commissioned an "appraisal" of the property, but real estate experts questioned whether this appraisal had any basis. In April 2007, BankAtlantic announced that it was having difficulty with its Florida real estate portfolio but hid the true extent of the inadequacy of its loan loss reserves. On October 25, 2007, the Company announced that it had to increase its loan loss reserves substantially. The news sent BankAtlantic's shares down nearly 40%, from $7.45 to $4.72 on heavy trading volumes.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
