Suit Claims Regions Financial Hid Subprime Risk

Law360, New York (March 26, 2008, 12:00 AM EDT) -- Regions Financial Corp.'s board of directors faces a derivative suit by an investor who claims shareholders were not adequately apprised of the company's exposure in the subprime mortgage market, which caused Regions' value to fall sharply when it collapsed starting in the summer of 2007.

The Birmingham, Ala.-based financial institution is a nominal defendant in the lawsuit filed by the N.Y.-based Catholic Medical Mission Board on March 19 in the U.S. District Court for the Northern District of Alabama.

The complaint accuses the board of covering...
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