SOURCE: Bernstein Liebhard LLP

August 24, 2010 17:29 ET

Bernstein Liebhard LLP Announces Filing of Action on Behalf of Investors in CVB Financial Corporation

NEW YORK, NY--(Marketwire - August 24, 2010) -  Bernstein Liebhard LLP -- which has pursued hundreds of securities, consumer and shareholder rights cases and recovered almost $3 billion for its clients, and has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last seven years -- today announced that a class action has been filed in the United States District Court for the Central District of California on behalf of purchasers (the "Class") of CVB Financial Corporation ("CVB" or the "Company") (NASDAQ: CVBF) common stock during the period October 21, 2009 and August 9, 2010 (the "Class Period"). 

CVB and certain of its Officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934.

In particular, unknown to investors during the Class Period, CVB suffered from a host of undisclosed adverse factors that negatively impacted its business and which would lead the Company to report declining financial results. In particular, at all times during the Class Period: (1) it was not true that the Company's purported success was the result of its integration of acquisitions or defendants' competent management when, in fact, defendants had propped up the Company's results by manipulating CVB's accounting for costs and expenses by failing to properly account for impaired loans; (2) defendants had materially overstated the Company's profitability by engaging in possible accounting violations related to the manner in which defendants accounted for troubled loans -- which violations would ultimately become the subject of an SEC investigation; (3) it was also not true that CVB contained adequate systems of internal operational or financial controls, such that CVB's reported financial statements were true, accurate or reliable; (4) as a result of the foregoing, it also was not true that the Company's financial statements and reports were prepared in accordance with Generally Accepted Accounting Principles ("GAAP") and Securities and Exchange Commission ("SEC") rules; and, (5) as a result of the adverse conditions which defendants failed to disclose, defendants lacked any reasonable basis to claim that CVB was operating according to plan, or that CVB could achieve guidance sponsored and/or endorsed by defendants.

It was only on August 9, 2010, however, when defendants filed with the SEC the Company's 2Q:10 Form 10-Q for the quarter ended June 30, 2010, that investors learned the truth about the Company. Defendants revealed that the Company was the subject of an investigation by the SEC into possible accounting violations related to the manner in which defendants accounted for troubled loans. This belated disclosure had an immediate adverse impact on the price of Company shares, which fell 22% on unusually heavy volume to close at $8.00 per share the day following the news.

Plaintiff seeks to recover damages on behalf of all Class members who purchased or otherwise acquired shares of CVB during the Class Period. If you purchased or otherwise acquired CVB shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than October 25, 2010.

A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.

If you are interested in discussing your rights as a CVB shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or seidman@bernlieb.com.

You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Central District of California.

Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
www.bernlieb.com

ATTORNEY ADVERTISING. © 2010 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

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