Colonial BancGroup Derivative Suit Gets The Boot

Law360, New York (July 22, 2009, 4:08 PM EDT) -- A federal judge has thrown out a shareholder derivative suit alleging that Colonial BancGroup Inc. announced it had gotten a preliminary green light to receive $550 million under the Troubled Asset Relief Program while withholding the fact that the bank would have to raise $300 million of its own equity to get the funding.

Judge Myron H. Thompson of the U.S. District Court for the Middle District of Alabama tossed Robert Playford's derivative complaint and dismissed the case Monday, finding that Playford had not pled particularized...
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