SOURCE: Stull, Stull & Brody

July 16, 2008 16:40 ET

Stull, Stull & Brody Announces Class Action Lawsuit on Behalf of Investors in Fifth Third Bancorp

NEW YORK, NY--(Marketwire - July 16, 2008) - Attorney Advertising. Notice is hereby given that a class action has been commenced in the United States District Court for the Southern District of Ohio, on behalf of all persons who purchased the securities of Fifth Third Bancorp ("FITB" or the "Company") (NASDAQ: FITB) (NYSE: FTB-PA) (NYSE: FTB/PA) (NYSE: FTB-PC) (NYSE: FTB/PC) from October 19, 2007 through June 17, 2008, inclusive (the "Class Period"), against the Company and Kevin T. Kabat, the Company's president and chief executive officer, alleging violations under the Securities Exchange Act of 1934 15 U.S.C. §§ 78j(b) and 78t(a) and Rule 10b-5, promulgated thereunder by the SEC, 17 C.F.R. § 240.10b-5 (the "Class").

This action is also brought on behalf of a sub-class (the "Sub-Class") of Class members who purchased $750,000,000 (in aggregate liquidation amount) of 7.25% Trust Preferred Securities, liquidation amount $25 per security, which were registered pursuant to an automatic shelf registration statement on Form S-3 (SEC File Nos. 333-141560 and 333-141560-03) filed with the Securities and Exchange Commission on March 26, 2007, (the "Trust Preferred Securities"), the sale of which to investors was in an initial public offering which became effective on or about October 25, 2007, Fifth Third Capital Trust VI (the "Offering") (NYSE: FTB-PB) (NYSE: FTB/PB), seeking to pursue remedies under Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act"), 15 U.S.C. §§ 77k and 77l. The Securities Act claim is also bought against the underwriters of Fifth Third Capital Trust VI preferred securities, Citigroup Global Markets Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Morgan Stanley & Co. Incorporated; UBS Securities LLC.; Banc of America Securities LLC; and Credit Suisse Securities (USA) LLC.

The Complaint alleges, among other things, that Defendants issued materially false and misleading statements concerning the quality of Fifth Thirds Tier 1 capital, the relevant ratios and sufficiency of its Tier 1 capital, the necessity to take net charge-offs stemming from increasing credit losses, and the need to shore up capital due to its exposure to poorly performing real estate markets in the Mid-West region. As a result of these materially false and misleading statements and omissions, plaintiffs allege that the price of Fifth Third's securities were artificially inflated during the Class Period. On June 18, 2008, the Company disclosed certain of the adverse factors of FITB's business and announced that it would slash its quarterly dividend and its earnings would be as little as 1 to 5 cents a share for the second quarter. In addition, the Company said it would sell subsidiaries and issue preferred stock to raise $2 billion. These disclosures caused Fifth Third's common stock to decline 27%, to close on June 18, 2008 at $9.26 per share on very heavy volume. The Company's stock had traded as high as $28.00 per share in February, 2008.

In order to be appointed lead plaintiff in the securities case, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as "lead plaintiff." If you wish to serve as lead plaintiff, you must move the Court no later than August 19, 2008. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Stull, Stull & Brody also has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought Fifth Third stock through your Fifth Third retirement account and have information or would like to learn more about these claims, please contact us.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

Contact Information

  • Contact:
    Tzivia Brody, Esq.
    Stull, Stull & Brody
    Email Contact
    Toll-Free: 1-800-337-4983
    Fax: 1-212-490-2022

    6 East 45th Street
    New York, NY 10017