INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP HAS FILED A SHAREHOLDER CLASS ACTION AGAINST COAST FINANCIAL HOLDINGS, INC. -CFHI
New York, NY April 12, 2007 - Murray, Frank & Sailer LLP has filed a class action on behalf of shareholders who purchased or otherwise acquired the securities of Coast Financial Holdings, Inc. (“Coast Financial” the “Company”) (NasdaqGM: CFHI) between October 5, 2005 to January 25, 2007, inclusive, (the "Class Period").
Join the Case
Coast Financial and certain of its officers are charged with making materially false and misleading statements in connection with the purchase and sale of securities in direct violation of the Securities Exchange Act of 1934. Specifically, defendants each failed to reveal that, throughout the Class Period, Coast Financial had materially increased its exposure and had extended tens of millions of dollars of credit for the construction of homes in Florida. Given the then-deteriorating condition of the Florida real estate market, the Company should have increased its loan loss reserves for this segment of the business but did not.
It was only beginning on January 19, 2007, that investors learned the truth about Coast Financial after defendants announced that the Company expected to suffer impairment to its loan portfolio because a major borrower was going out of business and would not complete many of its construction projects. In reaction to this news, the price of the Company's stock collapsed. Coast Financial later disclosed that it would increase its reserves by $14 million to properly account for its impaired loans. On January 24, 2007, after the market closed, Coast Financial issued a press release announcing that it has engaged Sandler O'Neill & Partners, L.P. to advise the Company as it reviews strategic alternatives. On the publication of these disclosures, over the course of several days, shares of the Company fell from above $16.00 to below $8.00 per share, on very heavy trading volume.
If you are a member of the class, you may, no later than May 21, 2007, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative, chosen by the Court, who acts on behalf of other class members in directing the litigation.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You may visit our website at www.murrayfrank.com. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]