SOURCE: Brower Piven, A Professional Corporation

August 30, 2010 11:22 ET

Brower Piven Encourages Investors Who Have Substantial Financial Losses From Investment in CVB Financial Corp. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the October 22, 2010 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - August 30, 2010) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of purchasers of the common stock of CVB Financial Corp. ("CVB" or the "Company") (NASDAQ: CVBF) during the period between October 21, 2009 and August 9, 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 October 22, 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 charges CVB and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CVB Financial Corp. operates as a bank holding company for Citizens Business Bank that provides various retail banking and financial services to small to mid-sized businesses, high net-worth individuals, and professionals in the United States.

The Complaint alleges that during the class Period, CVB Financial Corp. suffered from a host of undisclosed adverse factors that negatively impacted its business and which would lead the Company to report declining financial results. In particular, at all times during the Class Period: (1) it was not true that the Company's purported success was the result of its integration of acquisitions or defendants' competent management when, in fact, defendants had propped up the Company's results by manipulating CVB's accounting for costs and expenses by failing to properly account for impaired loans; (2) defendants had materially overstated the Company's profitability by engaging in possible accounting violations related to the manner in which defendants accounted for troubled loans -- which violations would ultimately become the subject of an SEC investigation; (3) it was also not true that CVB contained adequate systems of internal operational or financial controls, such that CVB's reported financial statements were true, accurate or reliable; (4) as a result of the foregoing, it also was not true that the Company's financial statements and reports were prepared in accordance with Generally Accepted Accounting Principles ("GAAP") and Securities and Exchange Commission ("SEC") rules; and, (5) as a result of the adverse conditions which defendants failed to disclose, defendants lacked any reasonable basis to claim that CVB was operating according to plan, or that CVB could achieve guidance sponsored and/or endorsed by defendants.

It was only on August 9, 2010, however, when defendants filed with the SEC the Company's 2Q:10 Form 10-Q for the quarter ended June 30, 2010, that investors learned the truth about the Company. Defendants shocked the market by revealing that the Company was the subject of an investigation by the SEC into possible accounting violations related to the manner in which defendants accounted for troubled loans. This belated disclosure had an immediate adverse impact on the price of Company shares, which slumped 22% on unusually heavy volume to close at $8.00 per share the day following the news.

If you have suffered a net loss for all transactions in CVB Financial Corp. 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 50 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