BankAtlantic Bancorp Inc., Fort Lauderdale, Fla., has been ordered by a jury to pay $2.41 per share to common stockholders in a class action lawsuit filed after the company's earnings were battered by problems with real estate.
The verdict applies only to those who purchased BankAtlantic common stock between April 16, 2007 and Oct. 26, 2007 and kept those shares through the end of the period.
In a statement, Mark Arisohn, the lead attorney for the plaintiffs, said, “BankAtlantic knew of the high risk that was growing in its loan portfolio but for a year lied to its stockholders about the extent of that risk. Florida citizens on the jury sent a message by finding the defendants committed securities fraud. Banks and their management cannot intentionally mislead their stockholders about the extent of lending risk.”
For its part, BankAtlantic declared it is "extremely disappointed with the verdict," said chairman and chief executive Alan B. Levan, also in a statement, noting the jury found seven isolated statements made in conference calls that were false.
"BankAtlantic lost money and Bancorp’s stock price declined because the Florida real estate market collapsed. The risk of that occurrence was fully, completely and timely disclosed to the market," he said, adding the company is pursuing every avenue to have the verdict set aside.
