SOURCE: Berger & Montague, PC

June 07, 2005 10:40 ET

Berger & Montague, P.C. Files Securities Class Action Suit Against R & G Financial Corp.

PHILADELPHIA, PA -- (MARKET WIRE) -- June 7, 2005 -- Berger & Montague, P.C. today announced that litigation has begun on behalf of purchasers of the common stock of R & G Financial Corp. (NYSE: RGF) between April 21, 2003 and April 25, 2005. This Federal Securities fraud class action is pending in the United States District Court for the Southern District of New York.

The complaint charges that R & G's management materially overstated assets and income in violation of GAAP. On April 25, 2005, R & G announced that it was restating its financial results for 2003 and 2004. According to R & G, the restatements are necessary to correct the accounting treatment for valuing R & G's residual interests retained in securitizations. R & G admitted that it may be required to take a charge of between $90 and $150 million.

On this April 25, 2005, announcement, R & G shares fell by more than a third on heavy volume.

If you purchased R & G common stock between April 21, 2003 and April 25, 2005, you may, not later than June 27, 2005, move the Court to serve as lead plaintiff on behalf of the class. A lead plaintiff acts on behalf of other class members in directing the litigation. Your ability to share in any recovery from the litigation is not affected by whether you serve as a lead plaintiff. You may retain Berger & Montague, P.C. or other counsel to serve as your counsel.

The law firm of Berger & Montague, P.C. is one of the nation's foremost plaintiffs' law firms in the area of complex litigation. The Berger firm has extensive experience representing investors in class action securities litigation and has led major cases over the past 30 years that have resulted in recoveries of several billion dollars. The firm has represented investors as lead counsel in such leading securities actions as Rite Aid, Sotheby's, Waste Management, Sunbeam, Boston Chicken and IKON Office Solutions.

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