SOURCE: Shalov Stone Bonner & Rocco LLP

June 06, 2008 22:40 ET

Shalov Stone Bonner & Rocco LLP Files Securities Fraud Class Action Against Franklin Bank Corp.

NEW YORK, NY--(Marketwire - June 6, 2008) - The law firm of Shalov Stone Bonner & Rocco LLP has filed a securities fraud class action on behalf of all investors who purchased or otherwise acquired the common or preferred stock of Franklin Bank Corp. (NASDAQ: FBTX) (AMEX: FBK-P) ("Franklin" or the "Company"), between October 29, 2007, and May 1, 2008, inclusive (the "Class Period"). The lawsuit is pending in the United States District Court for the Southern District of Texas and names as defendants Franklin and the Company's CEO and CFO during the Class Period.

According to the complaint, the defendants violated the Securities Exchange Act of 1934. Specifically, the complaint alleges that, during the Class Period, the defendants engaged 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, 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.

Plaintiffs are represented by Shalov Stone Bonner & Rocco LLP, which has extensive experience in the prosecution of class actions on behalf of investors. For more information about the lawsuit, please visit www.lawssb.com/news_story.php?news=20080606.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today.

Shalov Stone Bonner & Rocco LLP is the only firm to file a class action to protect the interests of Franklin investors and is actively investigating the facts surrounding the litigation. Investors are warned that while other law firms may issue press releases about the class action these firms have not necessarily filed cases of their own or performed an independent investigation. Some law firms issue such press releases solely in an effort to solicit clients.

To learn more, please contact Ralph M. Stone or Thomas G. Ciarlone, Jr., at Shalov Stone Bonner & Rocco LLP, 485 Seventh Avenue, Suite 1000, New York, New York 10018 (telephone: (212) 239-4340; e-mail: rstone@lawssb.com or tciarlone@lawssb.com).

Contact Information