SOURCE: Brower Piven, A Professional Corporation

May 20, 2010 17:58 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $500,000 From Investment in Frontier Financial Corporation to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the June 14, 2010 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - May 20, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Western District of Washington on behalf of purchasers of the common stock of Frontier Financial Corporation ("Frontier" or the "Company") (PINKSHEETS: FTBK) during the period between July 22, 2008 and March 16, 2010, 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 June 14, 2010 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 are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/415-6616) 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, when the value of Frontier's shares reached a high of $186.00, the extent of seriously delinquent commercial real estate loans and construction and land loans and that it 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. According to the complaint, in July 2008, the Federal Deposit Insurance Corp ("FDIC") and the state of Washington's Department of Financial Institutions ("DFI") conducted an investigation into Frontier's banking practices and cited Frontier with engaging in certain "unsafe and unsound" practices, and in March 2009, Frontier entered into a cease-and-desist order with banking regulators and agreed to take certain corrective actions related to the findings of the July 2008 report by the FDIC and DFI. Also, according to the complaint, on March 16, 2010, Frontier announced that it had received a Supervisory Prompt Corrective Action Directive from the FDIC and the FDIC warned that the Company was "critically undercapitalized" which could lead to Frontier being placed into conservatorship or receivership, and after 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, the value of Frontier's stock declined significantly.

If you have suffered a net loss for all transactions in Frontier Financial Corporation common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. 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

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact