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Doral Financial receives securities class action lawsuit

A law office recently noted that it filed a securities class action lawsuit against a financial company due to allegations of securities law violations.

Law firm Robbins Geller Rudman and Dowd, LLP, noted that the litigation was filed in the U.S. District Court for the District of Puerto Rico against Doral Financial Corp. This includes all shareholders who acquired interests during the class period between April 2, 2012, and May 1, 2014.

Allegations in the case involve Doral Financial's leaders violating the Securities Exchange Act of 1934. This is due to multiple issues including the company's potential problems with its internal financial reporting and controls, overstated assets due to under-reserved loan losses and expenses being understated. There was also potentially an issue where the company's net income was listed as being too high. With all of these issues in mind, the company may have failed to inform customers of the accurate numbers that showed that performance was not as high as the targets set.

It is possible for shareholders to take up the lead plaintiff position, but they will need to file the appropriate paperwork with the court by 60 days after the lawsuit's filing. This is not a mandatory position, and shareholders have the option to remain absent class members, still collecting in the event of a monetary return.

For stockholders who are interested in learning more about the case, the law firm will attempt to answer any questions. Both Samuel Rudman and David Rosenfeld are available to be reached, and they can be contacted by telephone or email. Additionally, shareholders can visit the law firm's website to learn more about the case.

Separate investigation begins
Another law office recently began looking into shareholders' claims against Doral Financial for many of the aforementioned reasons. There is a possibility that this will also turn into a class action lawsuit in the future.

Zamansky, LLC, noted that it is examining claims against Doral Financial for the same class period and many of the aforementioned reasons. The investigation will attempt to determine whether or not shareholders were misled by the company's leaders.

It is also an option to speak with the law office about this process, as well. The best person to discuss these matters with is Jake Zamansky, and he can be reached by email or telephone.

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