SOURCE: Holzer Holzer & Fistel, LLC

February 12, 2009 13:14 ET

Holzer Holzer & Fistel, LLC Announces That a Shareholder Class Action Has Been Filed Against Colonial BancGroup, Inc. (NYSE: CNB)

ATLANTA, GA--(Marketwire - February 12, 2009) - A shareholder class action lawsuit has been filed in the United States District Court for the Middle District of Alabama against The Colonial BancGroup, Inc. ("Colonial" or the "Company") (NYSE: CNB) and certain of its officers and directors on behalf of purchasers of Colonial common stock who purchased between December 2, 2008 and January 27, 2009, inclusive (the "Class Period").

The lawsuit alleges the Company violated the Securities Exchange Act of 1934 by making false and misleading statements to the public in its press releases and in its Securities Exchange Commission filings. Specifically, the lawsuit alleges the Company misrepresented or failed to fully disclose the terms upon which it had received preliminary approval from the U.S. Treasury Department to received $550 million under the Troubled Asset Relief Program ("TARP"). According to the complaint, the Company's misrepresentations and/or omissions caused its stock price to trade at artificially inflated prices in violation of federal law.

If you are a purchaser of Colonial common stock during the Class Period, you have the legal right to petition the Court to be appointed a "lead plaintiff." A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and be made within 60 days from February 9, 2009. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you are a Colonial investor and would like to discuss a potential lead plaintiff appointment, or your rights and interests with respect to the lawsuit, you may contact Michael I. Fistel, Jr., Esq., or Marshall P. Dees, Esq. via email at mfistel@holzerlaw.com, or mdees@holzerlaw.com, or via toll-free telephone at (888) 508-6832.

Holzer Holzer & Fistel, LLC is an Atlanta, Georgia law firm that dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. More information about the firm is available through its website, www.holzerlaw.com and upon request from the firm. Holzer Holzer & Fistel, LLC has paid for the dissemination of this promotional communication, and Michael I. Fistel, Jr. is the attorney responsible for its content.