| Company: | Wilmington Trust Corporation |
| Ticker Symbol: | WL |
| Class Period: | Apr-18-08 to Nov-1-10 |
| Date Filed: | Dec-2-10 |
| Lead Plaintiff Deadline: | Jan-31-11 |
| Court: | District of Delaware |
| Allegations: | |
The actions, pending in the United States District Court for the District of Delaware, were brought against Wilmington Trust and certain of its officers and directors for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Wilmington Trust, headquartered in Wilmington, Delaware, provides deposit-taking, lending, fiduciary, trustee, financial planning, investment consulting, asset management, insurance, broker-dealer, and administrative services in the United States and internationally.
The actions allege that during the Class Period, defendants issued materially false and misleading statements regarding Wilmington Trust's business prospects and financial results. Specifically, defendants allegedly failed to disclose: (i) that the Company improperly delayed recording impairments and accounting write-downs in its loan portfolio; (ii) that, as a result, the Company's financial statements were materially false and misleading and not fairly presented in conformity with Generally Accepted Accounting Principles; and (iii) that the Company's internal and disclosure controls were materially deficient.
On November 1, 2010, Wilmington Trust reported a loss of $365.3 million in the third quarter ended September 30, 2010 primarily as a result of continued deterioration in its loan portfolio and reflecting the Company's exposure to real estate construction lending concentrated in Delaware. The Company also disclosed that it has "little assurance" that its loan portfolio will strengthen significantly in the near term or that its capital position will not erode further.
On the same day, Wilmington Trust revealed that it had entered into a definitive merger agreement with M&T Bank Corporation. The merger transaction was valued at $3.84 per share of Wilmington Trust common stock, representing only 1.0 times the Company's tangible book value as of September 30, 2010, or approximately one-half of the closing price of Wilmington Trust common stock ($7.11 per share) on the prior trading day. On this news, the price of Wilmington Trust stock fell $2.90 per share, or approximately 41%, from its closing price on October 29, 2010, to close at $4.21 per share on November 1, 2010.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
