Regions Can't Duck Fraud Suit Over AmSouth Valuation

Law360, New York (June 7, 2011, 5:17 PM EDT) -- Regions Financial Corp. and three former executives lost their bid Tuesday to toss a putative class action in Alabama alleging the company misled investors by saying its purchase of residential mortgage bank AmSouth Corp. added massive value.

The plaintiffs claim that due to Regions' shoddy internal controls, it was not until the bank came under increased financial scrutiny following its October 2008 government bailout that it admitted its $6 billion in so-called goodwill asset estimates from the 2006 AmSouth deal was seriously impaired. After Regions' January...
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