HARTFORD, Conn., June 9, 2008 (LAWFUEL) — The law firm of
Schatz Nobel Izard P.C., which has significant experience representing
investors in prosecuting claims of securities fraud, announces that a
lawsuit seeking class action status has been filed in the United States
District Court for the Southern District of Texas on behalf of all
those who purchased the common or preferred stock of Franklin Bank
Corp. (“Franklin” or the “Company”) (Nasdaq:FBTX) (AMEX:FBK-P) between
October 29, 2007 and May 1, 2008 (the “Class Period”).
The Complaint charges that Franklin and certain of its officers and
directors violated federal securities laws by issuing materially false
and misleading statements regarding the Company’s business and
financial results. Specifically, the Complaint alleges that, during the
Class Period, the defendants engaged in a variety of accounting
improprieties, including their admitted failure to charge off
uncollectible loans and to mark Franklin’s loans to market. As a result
of the misconduct alleged, defendants understated the Company’s
delinquent, nonperforming, and uncollectible loans and thereby
misrepresented Franklin’s financial condition and results, including
its overall and per-share profits and the fair market value of its
residential mortgage loan portfolio.
If you are a member of the class, you may, no later than August 5,
2008, request that the Court appoint you as lead plaintiff of the
class. A lead plaintiff is a class member that acts on behalf of other
class members in directing the litigation. Although your ability to
share in any recovery is not affected by the decision whether or not to
seek appointment as a lead plaintiff, lead plaintiffs make important
decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the
defendants, to view a copy of the Complaint initiating the class action
or for more information about the case, class action cases in general,
and your rights, please contact Schatz Nobel Izard P.C. toll-free at
(800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website:
www.snilaw.com.
