Fund Says Regions Knowingly Fluffed AmSouth's Value

Law360, New York (October 25, 2010, 4:11 PM EDT) -- A union fund has filed a putative class action accusing Regions Financial Corp. and its former CEO of flimflamming investors by telling them its purchase of residential mortgage bank AmSouth Corp. added $6 billion in value before the housing meltdown crushed Regions' stock price.

The Local 703 I.B. of T. Grocery and Food Employees Welfare Fund's suit, lodged Wednesday in the U.S. District Court for the Northern District of Alabama, claims that "increased scrutiny" of the bank's financial affairs in the wake of an October 2008...
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