On April 1, 2009, an investor in an 8.875% Trust Preferred Securities of Regionsl Financing Capital Trust (NYSE RF-PZ) filed a class action lawsuit in United States District Court in New York on behalf of individuals who acquired these investments, pursuant or traceable to a malterially false and misleading registration statement and prospectus issued in connection with the April, 2008 offering of these securities. Also named in the action, in addition to Regions Financial Corporation, were certain of its officers and directors.
The Complaint alleges that in April, 2008, Regions consummated the offering pursuant to a false and misleading registration statement, raising some $345 million in the process. The Registration Statement incorporated financial results for 2007. In January, 2009, Regions Financial issued a press release announcing a loss for the quarter and year ending December 31, 2008, and as a result, the price of the securities dropped significantly.