Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Announces Class Action Lawsuit against WSB Financial Group, Inc.
WASHINGTON--(Business Wire)--The law firm Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed
a lawsuit in the United States District Court for the Western District
of Washington on behalf of its client and on behalf of other similarly
situated purchasers of WSB Financial Group, Inc. ("WSB Financial" or
the "Company") (Nasdaq: WSFG) common stock pursuant and/or traceable
to the Company's December 13, 2006 Initial Public Offering (the "IPO")
from between November 3, 2005 and May 10, 2007, inclusive (the "Class
Period"). WSB Financial is the holding company for Westsound Bank, a
Bremerton, Washington based financial institution that serves the
Puget Sound area.
The complaint charges WSB Financial and certain of its officers
and directors with violations of the Securities Act of 1933 (the
"Securities Act"). The complaint also alleges that D.A. Davidson - who
acted as acted as "Lead Underwriter" of the IPO - violated the
Securities Act.
Specifically, the complaint alleges that, in connection with the
IPO, defendants issued numerous materially false and misleading
statements which caused WSB Financial's securities to trade at
artificially inflated prices. As alleged in the complaint, the
Company's registration statement for the IPO failed to disclose that
the Company had been violating certain banking laws and regulations
relating to the origination, administration and monitoring of
construction and mortgage loans. Due to the Company's misleading
statements, WSB Financial's stock hit an intra-day high of $21 per
share during the Class Period.
According to the complaint, beginning in September 2007, a series
of announcements and investigations into the Company's lending
practices caused WSB Financial's stock to plummet. For example, in
late September, the Company announced that due to the reduced demand
of mortgage loans, the Company was eliminating thirty-three jobs in
its mortgage division. Moreover, the Company announced that its
Executive Vice President of Sales and Lending at Westsound Bank had
been terminated. The complaint alleges that as a result of these
announcements, the Company's stock fell from $15.30 per share to
$12.40 per share. Then, the Company announced that state and federal
regulators were looking into possible fraud and misconduct in its real
estate lending practices. Within two days of this announcement the
Company's stock dropped nearly 60 percent, from $11.20 on October 24,
2007 to $4.73 on October 25, 2007.
If you are a member of the class, you may, no later than January
2, 2007, request that the Court appoint you as Lead Plaintiff of the
class. Any member of the purported class may move the Court to serve
as Lead Plaintiff through counsel of their choice or may choose to
remain an absent class member.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant
experience in prosecuting investor class actions and actions involving
securities fraud. The firm has offices in Washington, D.C., New York,
Philadelphia, Chicago, San Francisco, and London, and is active in
major litigation pending in federal and state courts throughout the
nation. You may visit the firm's website at www.cmht.com.
The firm's reputation for excellence has been recognized on
repeated occasions by courts which have appointed the firm to lead
positions in complex multi-district or consolidated litigation. Cohen,
Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous
important cases on behalf of defrauded investors, and has been
responsible for a number of outstanding recoveries which, in the
aggregate, total in the billions of dollars.
If you have any questions about this notice or the action, or with
regard to your rights, please contact either of the following:
-0-
*T
Steven J. Toll, Esq.
Scott Evans
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cmht.com or sevans2@cmht.com
*T
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
Steven J. Toll, Esq./Scott Evans
888-240-0775 or 202-408-4600
stoll@cmht.com or sevans2@cmht.com
Copyright Business Wire 2007
