In a verdict handed down on Thursday (11/18/10) ,a South Florida federal jury found that BankAtlantic violated federal securities laws by making several false statements to investors during the class period. These false statements included seven statements made by bank executives during investor conference calls. In re BankAtlantic Bankcorp, Inc. Securities Litigation, S.D.Fla. Docket No. 07-cv-61542-UU.
The ruling represents a significant defeat for the corporation and is only the tenth class action jury verdict since the enactment of the PSLRA, based on post-PSLRA conduct. D&O Diary reports that this is also the first securities law class action verdict to arise out of the subprime credit crisis.
BankAtlantic lost $30 million in the third quarter of 2007 due to subprime exposure in the Florida real estate market. It has vowed to appeal the verdict.