SunTrust Banks, Inc. (NYSE:STI) -
SunTrust Capital IX 7.875% Trust Preferred Securities (NYSE:STI-PZ)
Murray, Frank & Sailer LLP is investigating securities fraud claims on behalf of all persons or entities who acquired the SunTrust Capital IX 7.875% Trust Preferred Securities (the "Securities") (NYSE:STI-PZ) of SunTrust Banks, Inc. ("SunTrust" or the "Company") pursuant to or traceable to a false and misleading registration statement and prospectus (collectively, the "Registration Statement") issued in connection with the Company's February 2008 initial public offering of the Securities (the "Offering").
It is alleged that the representations made in the Company's Registration Statement were materially false and misleading because at the time of the Offering: (i) the Company did not adequately disclose the extent to which its assets, including loans and mortgage-related securities, were impaired; (ii) the defendants failed to properly record losses for impaired assets, particularly with respect to the Company's Alt-A or "liar loan" portfolios; (iii) the Company's internal controls were inadequate to prevent the Company from improperly reporting the value of its assets; and (iv) the Company was not as well capitalized as it had publicly represented.
In November 2008, SunTrust received $3.5 billion in funds from the Troubled Asset Relief Program and an additional $1.4 billion in December 2008. Then on January 22, 2009, when SunTrust released its earnings for the fourth quarter of 2008, SunTrust reported its first quarterly loss in at least two decades, cut its quarterly dividend from $0.54 to $0.10 per common share, and announced a significant increase in its provision for loan losses. When this became public, the price of the Securities declined significantly.
If you are a member of the Class described above, and wish to represent a class of investors in this action or have questions concerning this notice or your rights, please contact us.
CONTACT: Murray, Frank & Sailer LLP
(800) 497-8076[email protected]