SOURCE: Brower Piven, A Professional Corporation

February 27, 2009 21:15 ET

Brower Piven Announces the Filing of a Class Action Lawsuit Against Colonial BancGroup, Inc. Expanding the Class Period to Include January 23, 2008 Through January 27, 2009 and Encourages Investors Who Have Losses in Excess of $50,000 From Investment in Colonial BancGroup, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the April 10, 2009 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - February 27, 2009) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Middle District of Alabama on behalf of purchasers of the securities of Colonial BancGroup, Inc. ("Colonial" or the "Company") (NYSE: CNB) during the period between January 23, 2008 and January 27, 2009, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than April 10, 2009 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You may contact Brower Piven (through or 410/986-0036) to answer any questions you may have in that regard.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that it did not properly account for its troubled loan portfolio and goodwill, that it had not taken appropriate steps to decrease its exposure to troubled mortgages notwithstanding assurance to the contrary, and, on December 2, 2008, that one condition for its receipt of $550 million in funding from the government sponsored Troubled Asset Relief Program ("TARP"), the Company would first have to raise $300 million from outside sources. According to the complaint, after a series of partial disclosures that the assurances pertaining to the quality of its loan portfolio were not justified, and after, on January 27, 2009, the Company revealed the previously undisclosed condition to its receipt of TARP funds, the value of Colonial's stock declined significantly.

If you have suffered a net loss for all transactions in Colonial BancGroup, Inc. securities during the Class Period (including shares or possibly calls purchased during, but retained after, the Class Period or possibly put options sold but not covered until after the Class Period), you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at, by email at, by calling 410-986-0036, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    Email Contact