|Company:||W Holding Company, Inc.|
|Ticker Symbol:||NYSE: WHI|
|Class Period:||April 24, 2006 to June 26, 2007|
|Lead Plaintiff Deadline:||Dec-20-07|
|Court:||District, Puerto Rico|
The Complaint charges W Holding and certain of its officers and directors with violations of the Securities Exchange Act of 1934. W Holding is a financial holding company whose business is conducted primarily through its wholly-owned subsidiary, Westernbank Puerto Rico, which offers a full range of business and consumer financial services, including banking, trust and brokerage services.
The Complaint alleges that defendants issued materially false and misleading financial statements that violated the federal securities laws and Generally Accepted Accounting Principles ("GAAP") in order to maintain artificially inflated financial results rather than timely write-down certain loans to Inyx, Inc. ("Inyx") that were impaired, despite (a) the Company's knowledge at the start of the Class Period of inconsistencies in Inyx's accounts receivables invoices which were used as collateral, (b) the Company's knowledge by November 2006 that at least $37 million in Inyx collateral did not exist, and (c) Inyx's repeated failure to obtain refinancing from other sources since September 2006 that never materialized.
On June 26, 2007, the Company disclosed that at least one of the Company's larger asset-based loans was impaired, and that the Company was preliminarily estimating a collateral deficiency with respect to the impaired loan of at least $80 million. Upon disclosure of this information, the price of W Holding stock plummeted over 37 percent in value, from $5.01 per share to a closing price of $3.14 per share, on unusually heavy trading volume.
As a result of the foregoing omissions, Defendants' statements during the Class Period were false and misleading because (a) the Company's financial statements, including its regulatory capital and book value per share, were artificially inflated due to its failure to write-down the impaired Inyx loans, (b) the Company's financial statements were not prepared in accordance with GAAP, and (c) the Company lacked adequate internal and financial controls.
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.