60% Drop in Doral Financial Corporation's Stock Price: Law Firm Investigates on Behalf of Shareholders
SAN DIEGO and SAN JUAN, Puerto Rico, May 12, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating potential violations of federal securities laws on behalf of investors of Doral Financial Corporation (NYSE: DRL). Doral Financial operates as the bank holding company for Doral Bank which provides retail banking services.
Doral Financial Shares Fall on Order to Revise Capital Plan
Shares of Doral Financial fell 62%, to close at $3.73 on May 2, 2014, following an announcement that the Federal Deposit Insurance Corporation ("FDIC") advised the company that Doral Bank may not include in the calculation of its Tier 1 Capital some or all of the tax receivables from the Government of Puerto Rico. As of December 31, 2013, tax receivables from the Puerto Rican government accounted for $289 million of Doral Bank's approximately $679 million of Tier 1 Capital. As a result, Doral Bank is no longer in compliance with its capital requirements under its Consent Order with the FDIC and may no longer accept, renew, or roll over any brokered deposits without a waiver by the FDIC. Further, the company revealed that unless it can develop a capital plan that meets regulatory requirements its "financial condition and results of operations will be materially and adversely affected."
Doral Financial Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in Doral Financial and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: http://www.robbinsarroyo.com/shareholders-rights-blog/doral-financial-corporation/
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP