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Suit Alleges Manipulation By Execs In Puerto Rican Bank Scandal

Law360 (November 5, 2005, 12:00 AM EST) -- After a Securities and Exchange Commission investigation into three major Puerto Rican mortgage companies revealed massive accounting fraud and caused the resignation of several top executives, investors have begun filing class action suits against the embattled companies.

Shareholders of First BanCorp, the first lending company to be the subject of SEC scrutiny, have filed a suit alleging the company made misleading statements that inflated share price.

According to the complaint, filed by Lerach Coughlin Stoia Geller & Robbins, “the company’s financial statements were materially false and...
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