Puerto Rico Bank Popular Hit With Shareholder Suit

Law360, New York (January 19, 2011, 2:19 PM EST) -- Shareholders of Popular Inc. have filed a lawsuit accusing the Puerto Rico bank and its officers of selling them securities at an inflated price by concealing the weak financial condition of its U.S. arm.

The investors lodged a complaint Tuesday in the U.S. District Court for the District of Puerto Rico, alleging the bank engaged in improper accounting that artificially inflated its reported earnings, liquidity and regulatory capital ratios.

The plaintiffs assert that they purchased shares of Popular common stock and/or Series B preferred shares at...
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