In re NetBank, Inc. Securities Litigation – Securities Fraud Class Action Settlement

Berger Montague served as lead counsel and obtained a $12.5 million settlement on behalf of purchasers of NetBank common stock alleging claims against NetBank and certain of its officers and directors for violations of federal securities laws. Led by Michael Dell’Angelo, the case was litigated in the United States District Court for the Northern District of Georgia and captioned In re NetBank, Inc. Securities Litigation, No. 1:07-cv-2298-TCB (N.D. Ga.).

The lawsuit alleged two bases for relief: (1) violation of § 10(b) of the Securities Exchange Act of 1934 and the related SEC Rule 10b-5; and (2) violation of § 20(a) of the Securities Exchange Act of 1934. The plaintiff alleged that the defendants artificially inflated the market price of NetBank common stock by making false and misleading statements regarding the financial results, operations and condition of the company. The plaintiff further alleged that NetBank publicly issued false financial statements of its operating results and financial condition, as well as misrepresentations concerning its business operations, including its subprime mortgage exposure, deficient mortgage underwriting and risk control practices, inadequate reserves and controls, failure to comply with Generally Accepted Accounting Principles (GAAP) and regulatory requirements, the departure of its outside auditor, its inability to file accurate financial statements, its overstated and unreliable book value, and its true financial condition and results.

If you are an investor and have questions about a potential securities fraud lawsuit, please contact Berger Montague.

About Berger Montague

Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, and Washington, D.C.