SunTrust Wants Sanctions For Attys In 'Fabricated' Suit

Law360, New York (November 3, 2011, 5:24 PM EDT) -- SunTrust Banks Inc. asked a Georgia federal judge on Thursday to sanction attorneys representing investors who brought a putative securities class action against the bank, saying their suit was founded on "complete fabrications."

The suit accuses Atlanta-based SunTrust, one of the largest banks operating in the South, of hiding its exposure to high-risk housing loans when it made a February 2008 stock offering. SunTrust says the plaintiffs' attorneys willfully misrepresented allegations from Scott Trapani, a onetime SunTrust vice president of risk management whose claims figure prominently...
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