SOURCE: Sarraf Gentile LLP

June 13, 2008 15:59 ET

Sarraf Gentile LLP Files Class Action Lawsuit Against Franklin Bank Corp.

NEW YORK, NY--(Marketwire - June 13, 2008) - The law firm of Sarraf Gentile LLP has filed a class action lawsuit on behalf of all persons who purchased the common or preferred stock of Franklin Bank Corp. (NASDAQ: FBTX) (AMEX: FBK-P) ("Franklin" or the "Company"), between April 26, 2007, and May 1, 2008, inclusive (the "Class Period"). The action is pending in the United States District Court for the Southern District of Texas.

According to the complaint, the defendants violated the Securities Exchange Act of 1934 by engaging in a variety of accounting improprieties, including their admitted failure to charge off uncollectible loans and to mark Franklin's loans to market. As a result of the misconduct alleged, the complaint alleges that defendants understated the Company's delinquent, nonperforming, and uncollectible loans and thereby misrepresented Franklin's financial condition and results, including its overall and per-share profits and the fair market value of its residential mortgage loan portfolio.

If you purchased Franklin stock during the Class Period, you may, no later than August 5, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

For more information about the case, the claims, and your rights, please contact Sarraf Gentile LLP who will, without obligation or cost to you, attempt to answer your questions. Sarraf Gentile LLP is active in major class action litigations pending across the nation. You may contact Sarraf Gentile LLP at 11 Hanover Square, New York, New York 10005 (telephone: 212-868-3610; e-mail: joseph@sarrafgentile.com).

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