SOURCE: Milberg LLP

August 26, 2008 16:30 ET

Milberg LLP Announces Its Investigation on Behalf of Certain Investors of CIT Group, Inc. -- CIT

NEW YORK, NY--(Marketwire - August 26, 2008) - Attorney Advertising. The law firm of Milberg LLP is investigating possible illegal conduct as alleged in proposed class action lawsuits filed in the United States District Court for the Southern District of New York against CIT Group, Inc. ("CIT" or the "Company") (NYSE: CIT) and certain of CIT's officers and directors for violations of the Securities Exchange Act of 1934. The lawsuits are brought on behalf of all purchasers of common stock from April 18, 2007 through March 5, 2008 (the "Class Period").

CIT is a leading commercial and consumer finance company, providing clients with financing and leasing products and advisory services in North America, Europe, Latin America and Asia Pacific.

According to the complaints, during the Class Period, defendants made false and misleading statements about the Company's financial condition. Specifically, CIT's public financial statements failed to account for tens of millions of dollars in student loans to students attending Silver State Helicopter ("Silver State"), which were highly unlikely to be repaid and should have been written off. The company failed to write off these loans and as a result its financial statements were contrary to Generally Accepted Accounting Principles ("GAAP").

On March 6, 2008, Keefe, Bruyette & Woods issued an analyst report on CIT lowering its first quarter 2008 earnings per share estimate by $.08 based on concerns that CIT would have to write down a significant portion of its private student loan portfolio, including the risk that the Company would have to charge off $179 million of private student loans made to students of Silver State, which recently filed for bankruptcy. As a result, CIT's stock price dropped $4.50 to close to $15.86 on March 6, 2008.

If you purchased CIT common stock from April 18, 2007 through March 5, 2008, you may move the court no later than September 23, 2008, and request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. You may retain Milberg LLP, or other attorneys, to serve as your counsel in this action.

Milberg LLP has been representing individual and institutional investors for nearly 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg website (http://www.milberg.com) for more information about the firm. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys:

Contact Information

  • Roland Riggs
    Peter Safirstein
    Milberg LLP
    One Pennsylvania Plaza, 49th Fl.
    New York, NY 10119-0165
    Phone number: (800) 320-5081
    Email: contactus@milberg.com

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