NEW YORK, July 12, 2008 (LAWFUEL) — In what federal regulators
are calling the second-largest U.S. bank failure in history, mortgage
lender IndyMac Bancorp, Inc.’s (NYSE:IMB) operations have been taken
over by the Federal Deposit Insurance Corp. (FDIC), the regulator that
oversees the retail bank. The Office of Thrift Supervision (OTS) said
it shut down IndyMac on Friday and that a successor institution,
IndyMac Federal Bank, will be opened on Monday.
After IndyMac’s stock price closed on Friday at $.28 per share — down
over 99% from IndyMac’s share price of over $36 just one year ago —
the OTS said in a statement, “The OTS has determined that the current
institution, IndyMac Bank, is unlikely to be able to meet continued
depositors’ demands in the normal course of business and is therefore
in an unsafe and unsound condition.”
On June 30, 2008, Scott+Scott LLP filed a class action against IndyMac
on behalf of those purchasing IndyMac common stock between August 17,
2007 and May 11, 2008, inclusive (the “Class Period”), for violations
of the U.S. securities laws. The action will continue to proceed on
behalf of the class despite the seizure by federal regulators. The
complaint alleges that during the Class Period, defendants issued
materially false and misleading statements regarding IndyMac’s business
and financial results and, as a result, the price of the Company’s
securities was inflated during the Class Period, thereby harming
investors.
If you purchased IndyMac common stock during the Class Period and wish
to serve as a lead plaintiff in the action, you must move the Court no
later than August 11, 2008. Any member of the investor class may move
the Court to serve as lead plaintiff through counsel of its choice, or
may choose to do nothing and remain an absent class member. If you wish
to discuss this action or have questions concerning this notice or your
rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800)
404-7770, (860) 537-5537 or visit the Scott+Scott website,
http://www.scott-scott.com) for more information. There is no cost or
fee to you.
