Saxena White P.A. has commenced a class action on behalf of an institutional investor in the United States District Court for the District of Delaware on behalf of purchasers of the common stock of Wilmington Trust Corporation (“Wilmington” or the “Company”)(NYSE: WL) between January 18, 2008 and October 29, 2010, inclusive (the “Class Period”), including purchasers of the securities issued pursuant to the Company’s public offering on February 23, 2010 at $13.25 per share.
The Complaint charges Wilmington Trust and certain of its officers, directors, executives and underwriters with violations of the Securities Act of 1933 and Securities Exchange Act of 1934. Wilmington Trust is a financial services holding company that provides regional banking services throughout the mid-Atlantic region, wealth advisory services to high-net-worth clients in 36 countries, and corporate client services to institutional clients in 89 countries.
On November 1, 2010, Wilmington Trust stunned investors when it issued two related press releases. First, Wilmington Trust announced dismal results for the third quarter of 2010, reporting a loss of $365.3 million. The Company stated that a primary cause for the loss was continued deterioration in the Company’s loan portfolio, reflecting the extent of the Company’s exposure to real estate construction lending concentrated in Delaware. Wilmington Trust further stated that it had “little assurance” that its loan portfolio would strengthen significantly in the near term, or that the Company’s capital position would not erode further.
In a second press release, Wilmington Trust announced that it would merge with M&T Bank Corporation (“M&T”), with the two companies having signed a definitive merger agreement. Under the terms of the merger agreement, Wilmington Trust common shareholders would receive 0.051372 shares of M&T common stock in exchange for each share of Wilmington Trust common stock. Most shockingly, the transaction was valued at $3.84 per Wilmington Trust share, representing 1.0x tangible book value as of September 30, 2010. The prior trading day, October 29, 2010, Wilmington Trust stock had closed at $7.11 per share.
Upon the release of this news, shares of the Company’s stock fell $2.90 per share, or 40.79 percent, to close on November 1, 2010 at $4.21 per share, on unusually heavy trading volume.
You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased Wilmington Trust stock between January 18, 2008 and October 29, 2010, inclusive, including purchasers of the securities issued pursuant to the Company’s public offering on February 23, 2010 at $13.25 per share, you may contact Joe White or Greg Stone at Saxena White P.A. to discuss your rights and interests:
Joseph E. White, III
jwhite@saxenawhite.com
Greg Stone
gstone@saxenawhite.com
Saxena White P.A.
2424 North Federal Highway, Suite 257
Boca Raton, FL 33431
Tel: (561) 394-3399
Fax: (561) 394-3382
www.saxenawhite.com
If you purchased Wilmington Trust shares during the Class Period and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than January 18, 2011. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., which has offices in Boca Raton and Boston, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.
