Labaton Sucharow LLP Appointed Lead Counsel in Securities Class Action Litigation Against Colonial BancGroup

NEW YORK--(Business Wire)--
Labaton Sucharow LLP announced today that the Firm has been appointed Lead
Counsel in the securities class action litigation against Colonial BancGroup,
Inc. ("Colonial" or the "Company") on behalf of the Court-appointed Lead
Plaintiffs State-Boston Retirement System, Norfolk County Retirement System,
City of Brockton Retirement System, and Arkansas Teacher Retirement System
(collectively, the "Public Pension Fund Group"). Lead Plaintiffs represent a
class of purchasers of Colonial`s securities between January 23, 2008 and
January 27, 2009, inclusive (the "Class Period"). The case is pending in the
Middle District of Alabama in front of the Honorable Myron H. Thompson.

The case stems from allegations that, despite the continued softening of the
real estate and credit markets in the first half of 2008, Defendants repeatedly
assured Colonial investors that the Company had taken the appropriate steps to
decrease its exposure to troubled mortgages. On October 22, 2008, Colonial
suspended its dividend and announced its third quarter 2008 financial results: a
net loss of $71 million due in substantial part to a sharp increase in its
nonperforming assets and charge-offs. Colonial`s stock continued to trade at
artificially inflated levels as this revelation, along with others made during
the remainder of the Class Period, was accompanied by denials and continued
misrepresentations by Defendants.

After the market closed on January 27, 2009, Colonial announced its fourth
quarter and full year 2008 financial results: a net loss of $825 million for the
quarter due in substantial part to a $575 million goodwill impairment charge, a
$415 million charge to write off troubled assets and an increase to its loan
loss reserve. For the first time, Colonial further disclosed that its receipt of
$550 million from the U.S. Treasury`s Troubled Assets Relief Program ("TARP")
was conditioned upon the Company raising an additional $300 million in equity.
Colonial has been lambasted by analysts and investors for failing to timely
disclose this significant TARP contingency.

Christopher Keller, partner, Labaton Sucharow said, "Investors lost millions due
to Colonial`s false statements regarding it`s exposure to risky mortgages and
the financial health of the company. Lead Plaintiffs seek to do all they can to
best protect their employees and retirees` pension assets against this
fraudulent behavior."

Labaton Sucharow LLP is one of the country's premier national law firms that
represents institutional and individual investors in class action, complex
securities and corporate governance litigation.

Press Contact:
Labaton Sucharow LLP
Stacey Szluka, 212-907-0664
sszluka@labaton.com

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