| Company: | CVB Financial Corp |
| Ticker Symbol: | CVBF |
| Class Period: | Oct-21-09 to Aug-9-10 |
| Date Filed: | Aug-24-10 |
| Lead Plaintiff Deadline: | Oct-23-10 |
| Court: | Central District of California |
| Allegations: | |
CVBF and certain of its Officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934.
In particular, unknown to investors during the Class Period, CVBF suffered from a host of undisclosed adverse factors that negatively impacted its business and which would lead the Company to report declining financial results. In particular, at all times during the Class Period: (1) it was not true that the Company's purported success was the result of its integration of acquisitions or defendants' competent management when, in fact, defendants had propped up the Company's results by manipulating CVBF's accounting for costs and expenses by failing to properly account for impaired loans; (2) defendants had materially overstated the Company's profitability by engaging in possible accounting violations related to the manner in which defendants accounted for troubled loans - which violations would ultimately become the subject of an SEC investigation; (3) it was also not true that CVBF contained adequate systems of internal operational or financial controls, such that CVBF's reported financial statements were true, accurate or reliable; (4) as a result of the foregoing, it also was not true that the Company's financial statements and reports were prepared in accordance with Generally Accepted Accounting Principles ("GAAP") and Securities and Exchange Commission ("SEC") rules; and, (5) as a result of the adverse conditions which defendants failed to disclose, defendants lacked any reasonable basis to claim that CVBF was operating according to plan, or that CVBF could achieve guidance sponsored and/or endorsed by defendants.
It was only on August 9, 2010, however, when defendants filed with the SEC the Company's 2Q:10 Form 10-Q for the quarter ended June 30, 2010, that investors learned the truth about the Company. Defendants shocked the market by revealing that the Company was the subject of an investigation by the SEC into possible accounting violations related to the manner in which defendants accounted for troubled loans. This belated disclosure had an immediate adverse impact on the price of Company shares, which slumped 22% on unusually heavy volume to close at $8.00 per share the day following the news.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
