The Brualdi Law Firm has commenced a lawsuit in the US District Court for the Northern District of Illinois on behalf of purchasers of Corus Bankshares common stock during the period from January 25, 2008 to January 30, 2009 for violations of the federal securities laws.
The complaint alleged that Corus’s press releases, Securities and Exchange Commission filings and other public statements during the period from January 25, 2008 to January 30, 2009 were false and misleading for failing to disclose that Corus was failing to recognise losses on its condominium loans as required by accounting rules.
The lawsuit also alleged that Corus was purchasing condominiums in developments Corus had financed in an attempt to inflate the appraised values of condominiums to delay having to recognise losses on financing for such condominiums; inflate developers’ sales figures to increase the likelihood of successful future sales and create the illusion of successful sales histories in order to inflate appraisal values for the condominiums to ensure inflated future prices for the condominiums.
Reportedly, the Rosen Law Firm’s release stated that on January 30, 2009, Corus announced poor financial results for fiscal 2008 stemming from the adverse business practices it had concealed.
