LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP announces that it is investigating potential claims on behalf of purchasers of the common stock of Commonwealth Bankshares, Inc. (“Commonwealth” or the “Company”) (OTC:CWBS) concerning possible violations of federal securities laws. The investigation focuses on allegations that certain statements issued by Commonwealth between May 9, 2008 and September 23, 2011 were false and misleading concerning the Company’s financial performance and prospects.
Commonwealth is a bank holding company that primarily conducted its business through Bank of the Commonwealth operating subsidiary (the “Bank”). The investigation concerns allegations that the Company misrepresented or failed to disclose that the Company's loan portfolio was deteriorating, by fraudulently underreporting the Company's allowance and provision for loan and lease losses, and concealed the Bank's inadequate internal controls, which ultimately caused the Bank to fail.
On April 15, 2011 in a Form 10-K filed with the Securities and Exchange Commission, the Company revealed that “[a] federal grand jury is investigating the Bank and certain former and current officers and directors regarding lending and reporting practices of the Bank and the manner in which certain loans and loan renewals were considered and approved. In addition, the grand jury is investigating the personal interests of several of these individuals involving certain Bank transactions.”
Then, on September 23, 2011 the Virginia State Corporation Commission Bureau of Financial Institutions closed the Bank and appointed the Federal Deposit Insurance Corp. as receiver. This caused the Company's stock to fall nearly 55% on September 26, 2011.
If you purchased Commonwealth stock between May 9, 2008 and September 23, 2011, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
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