HARTFORD, Conn., Sept. 25, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Puerto Rico on behalf of all persons who purchased the common stock of W Holding Company, Inc. ("W Holding") (NYSE:WHI) between April 24, 2006 and June 26, 2007, inclusive (the "Class Period").
The Complaint charges that W Holding and certain of its officers and directors violated federal securities laws. Specifically, during the Class Period, defendants issued materially false and misleading statements and failed to disclose: (i) that W Holding's financial results were artificially inflated due to the Company's failure to write-down the Inyx loans which were impaired. W Holding has now admitted that it is not likely to collect on the Inyx loans and that it will be toting a charge of at least $80 million; (ii) that the Company improperly delayed the recognition of its impaired assets in order to inflate its reported income and asset quality; (iii) that the Company's "regulatory capital" was similarly overstated; and (iv) that the Company's "book value" per share was materially overstated; and as more fully described in the complaint, the Company's published financial statements violated U.S. Generally Accepted Accounting Principles.
According to the Complaint, on June 26, 2007, W Holding filed a Form 8-K with the SEC which reported that the Company had determined that "one of its larger asset-based loans" is impaired. In response to the Company's announcement, the price of W Holdings stock dropped from $5.01 per share to $3.14 per share and continued to decline, falling to $2.64 per share on June 29, 2007.
If you are a member of the class, you may, no later than November 20, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.