BankAtlantic Lied About Loan Risks, Jury Finds

Law360, New York (November 18, 2010, 4:46 PM EST) -- A federal jury has found that BankAtlantic Bancorp Inc. failed to disclose the extent of risk in its troubled loan portfolio in what the plaintiffs' attorney said was the first securities class action sparked by the financial crisis to go to trial.

The jury in the U.S. District Court for the Southern District of Florida delivered the verdict Thursday, ordering BankAtlantic to pay $2.41 per share in damages to investors.

It rejected BankAtlantic's claims that investors' losses were caused by unforeseen events as opposed to securities...
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