| Company: | NetBank Inc. |
| Ticker Symbol: | PINK: NTBK |
| Class Period: | May 1, 2006 to Sept. 17, 2007 |
| Date Filed: | Sep-20-07 |
| Lead Plaintiff Deadline: | Nov-19-07 |
| Court: | District, GA |
| Allegations: |
A lawsuit has been filed in federal court in Atlanta seeking class action against NetBank Inc., alleging the troubled company and some of its former and current executives made false and misleading statements to artificially inflate the value of the company's stock.
The suit was filed on Thursday on behalf of people who bought or acquired NetBank (Pink Sheets: NTBK) securities between May 1, 2006 and Sept. 17, 2007 -- the "class period". The suit alleges the company and some of its management repeatedly represented, beginning in May 2006, that Atlanta-based NetBank was restructuring its operations to rid its strong core banking business from high risk non-conforming loan origination operations and other business segments which detracted from the performance of its core business. Defendants claimed its restructuring was largely complete by February 2007 and that investors could rely on the book value of the company as reflecting its true value, the law firm said.
However, the suit said defendants shocked investors by disclosing that as of May 21, NetBank's core banking business was so deficient in meeting regulatory capital requirements that bank regulators compelled NetBank to consummate a $2.5 billion asset sale at a significant $60 million to 70 million loss in order to cover NetBank depositors as required by law. The company's common stock price fell 66 percent from $1.75 per share on May 18 to 59 cents a share on May 21 on massive volume of about 11.2 million shares -- more than 45 times the previous day's volume.
On Aug. 6, NetBank announced that its wholly owned retail mortgage business, Market Street Mortgage Corp., was completely valueless. NetBank also reported NASDAQ was delisting the company's common stock from trading.
On Aug. 7, NetBank's stock price dropped 30 percent to 14 cents a share from its previous day's close of 20 cents share on massive volume of about 5.2 million shares.
Then on Sept. 17, EverBank Financial Corp. pulled the plug on its planned acquisition of NetBank because it had become "clear" that NetBank would not be able to meet its regulatory requirements. NetBank's stock price closed at 8 cents a share on Sept. 17.
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 suit was filed on Thursday on behalf of people who bought or acquired NetBank (Pink Sheets: NTBK) securities between May 1, 2006 and Sept. 17, 2007 -- the "class period". The suit alleges the company and some of its management repeatedly represented, beginning in May 2006, that Atlanta-based NetBank was restructuring its operations to rid its strong core banking business from high risk non-conforming loan origination operations and other business segments which detracted from the performance of its core business. Defendants claimed its restructuring was largely complete by February 2007 and that investors could rely on the book value of the company as reflecting its true value, the law firm said.
However, the suit said defendants shocked investors by disclosing that as of May 21, NetBank's core banking business was so deficient in meeting regulatory capital requirements that bank regulators compelled NetBank to consummate a $2.5 billion asset sale at a significant $60 million to 70 million loss in order to cover NetBank depositors as required by law. The company's common stock price fell 66 percent from $1.75 per share on May 18 to 59 cents a share on May 21 on massive volume of about 11.2 million shares -- more than 45 times the previous day's volume.
On Aug. 6, NetBank announced that its wholly owned retail mortgage business, Market Street Mortgage Corp., was completely valueless. NetBank also reported NASDAQ was delisting the company's common stock from trading.
On Aug. 7, NetBank's stock price dropped 30 percent to 14 cents a share from its previous day's close of 20 cents share on massive volume of about 5.2 million shares.
Then on Sept. 17, EverBank Financial Corp. pulled the plug on its planned acquisition of NetBank because it had become "clear" that NetBank would not be able to meet its regulatory requirements. NetBank's stock price closed at 8 cents a share on Sept. 17.
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.
