SOURCE: Dyer & Berens LLP

Dyer & Berens LLP

April 19, 2010 13:55 ET

Dyer & Berens LLP Files Class Action Lawsuit on Behalf of Investors Who Purchased or Otherwise Acquired Frontier Financial Corporation Common Stock Between July 22, 2008 and March 16, 2010; Announces Upcoming Investor Deadline -- FTBK

DENVER, CO--(Marketwire - April 19, 2010) -  Dyer & Berens LLP (www.DyerBerens.com) today announced that it has filed a class action lawsuit in the United States District Court for the Western District of Washington on behalf of investors who purchased or otherwise acquired the common stock of Frontier Financial Corporation ("Frontier") (NASDAQ: FTBK) between July 22, 2008 and March 16, 2010, inclusive.

If you wish to serve as a lead plaintiff, you must move the court no later than June 14, 2010. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jeffrey A. Berens, Esq., at (888) 300-3362, (303) 861-1764, or via email at jeff@dyerberens.com. Any member of the putative class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The plaintiff alleges that defendants issued materially false and misleading statements regarding the company's business and financial results and engaged in improper behavior which harmed Frontier's investors by failing to disclose the extent of seriously delinquent commercial real estate loans and construction and land loans. The company also failed to adequately and timely record losses for its impaired loans, causing its financial results and its Tier 1 capital ratio to be materially false.

In July 2008, the FDIC and the State of Washington's Department of Financial Institutions conducted an investigation into Frontier's banking practices and cited Frontier with engaging in certain "unsafe and unsound" practices. In March 2009, Frontier entered into a cease-and-desist order with banking regulators and agreed to take certain corrective actions. Then, on March 16, 2010, Frontier announced that it had received a Supervisory Prompt Corrective Action Directive from the FDIC. The FDIC warned that the company was "critically undercapitalized" which could lead to Frontier being placed into conservatorship or receivership, raising doubt about the ability of the company to continue as a going concern. Frontier further restated its previously announced fourth quarter and year end 2009 results as the FDIC determined that Frontier's loan loss provision and its valuation adjustment of other real estate owned were understated by $30 million and $3.5 million, respectively. On this news, Frontier's stock dropped $1.35 per share to close at $2.89 per share on March 17, 2010, a one-day decline of nearly 32%.

Plaintiff seeks to recover damages on behalf of Frontier investors. The plaintiff is represented by Dyer & Berens LLP, which has significant expertise in prosecuting investor class actions. For more information about the firm, please go to www.DyerBerens.com.

Contact Information

  • Contact:

    Jeffrey A. Berens
    Dyer & Berens LLP
    303 East 17th Avenue, Suite 300
    Denver, CO 80203
    Tel: (888) 300-3362 or (303) 861-1764
    Email: Email Contact