Lurching TierOne Faces Shareholder Class Action

Law360, New York (May 24, 2010, 3:33 PM EDT) -- Already under regulatory supervision and delisted from Nasdaq, TierOne Corp. now faces a shareholder lawsuit alleging it defrauded investors by concealing the fact that delinquent loans left the bank precariously undercapitalized.

The class action complaint, filed Thursday in the U.S. District Court for the District of Nebraska, claims the bank’s top brass falsified reports to the U.S. Securities and Exchange Commission, downplaying its losses and asserting that its internal controls were effective.

Starting in August 2008, TierOne issued regulatory reports that misrepresented its financial health and...
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