Colonial BancGroup Dropped From Securities Litigation

Law360, New York (December 2, 2009, 6:55 PM EST) -- A judge has dismissed Colonial BancGroup Inc. from a consolidated securities proposed class action based on the financial institution's bankruptcy filing and refused efforts from the lead plaintiffs to lift a stay on discovery proceedings as to several other defendants.

Judge Myron H. Thompson of the U.S. District Court for the Middle District of Alabama issued the two orders Wednesday in the case claiming that Colonial misled investors about its subprime lending practices.

The court dropped Colonial without prejudice based on the troubled financial institution's suggestion...
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