Followers | 241 |
Posts | 12089 |
Boards Moderated | 1 |
Alias Born | 04/05/2009 |
![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Saturday, June 10, 2023 12:50:20 PM
TD Bank and its top officers were sued in a class action filed by First Horizon Corp. stockholders claiming false statements made by the defendants inflated the Tennessee bank’s stock, which then tumbled after TD’s acquisition of it failed.
According to the New Jersey federal court complaint, TD Bank and its officers continuously made public comments that the deal would go through by the mid-2023, at the latest.
Those statements were knowingly false, the complaint asserts. The defendants knew there were problems getting approval for the deal from federal regulators because there were problems with TD Bank’s internal controls, including its anti-money laundering practices, the plaintiffs allege.
As a result of those revelations, First Horizon’s stock dropped from a high of $24.64 per share when the deal was announced to $10.06 on May 4 after it was abandoned.
Filed by the Arbitrage Fund, the suit seeks class certification for all others who purchased First Horizon stock between Feb. 28, 2022, when the acquisition was first announced, and May 3, 2023, when the deal was terminated.
First Horizon has 427 branches in southern US states and TD Bank which is a Canadian company that has been moving into US banking markets since 2005, hoped to increase its presence in the south through the acquisition.
The complaint said that the defendants violated Section 10(b) of the Securities and Exchange and Rule 10b-5 promulgated there under, by carrying out a scheme to deceive the investing public, artificially inflating the price of First Horizon’s stock, and causing investors to purchase First Horizon stocks at that price.
The complaint alleges that to carry out the scheme, the defendants made false or misleading statements to the investing public.
The complaint also alleged that the individual defendants violated section 20(a) of the Exchange Act by having control over the allegedly fraudulent scheme and disseminating the false or misleading information.
Elizabeth Goldenshtein of TD Bank told Bloomberg Law that “TD’s public disclosures are accurate. The lawsuit is without merit and TD will vigorously defend it.”
Carella Byrne Cecchi Brody & Agnello PC, Entwistle & Cappucci LLP, and Saxena White PA represented Arbitrage Fund.
The case is Arbitrage Fund v. Toronto-Dominion Bank, D.N.J., No. 1:23-cv-2763, complaint filed 5/22/23.
To contact the reporter on this story: Bernie Pazanowski in Washington at bpazanowski@boombergindustry.com
To contact the editors responsible for this story: Martina Stewart at mstewart@bloombergindustry.com; Andrew Harris at aharris@bloomberglaw.com
https://news.bloomberglaw.com/us-law-week/td-bank-sued-by-first-horizon-investors-after-acquisition-fails
"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, Founder and CEO of Harwood International
Recent FHN News
- First Horizon Recognized by TIME Magazine • PR Newswire (US) • 07/25/2024 06:00:00 PM
- First Horizon Declares Cash Dividends on Common and Preferred Stock • PR Newswire (US) • 07/23/2024 08:15:00 PM
- Tech-Led Decline in U.S. Index Futures Pre-Market, Oil Prices Steady After U.S. Inventory Drop • IH Market News • 07/17/2024 10:30:52 AM
- First Horizon Corporation's Momentum Continues with Strong Second Quarter 2024 Results; Net Income Available to Common Shareholders of $184 Million or EPS of $0.34; $195 Million or $0.36 on an Adjusted Basis, up $0.01 from prior quarter* • PR Newswire (US) • 07/17/2024 10:30:00 AM
- First Horizon Bank honored by Junior Achievement with U.S. President's Volunteer Service Award • PR Newswire (US) • 06/26/2024 02:00:00 PM
- First Horizon Named to the Forbes America's Best-In-State Banks 2024 • PR Newswire (US) • 06/25/2024 02:00:00 PM
- First Horizon Foundation Awards $1.6 Million to Grants for Good Recipients • PR Newswire (US) • 06/18/2024 02:00:00 PM
- First Horizon Bank has been named to the Financial Brand's Power 100 Banks Using Social Media • PR Newswire (US) • 06/17/2024 06:00:00 PM
- nCino Deploying Banking Advisor, a Generative AI Solution to Drive New Efficiencies in Financial Institutions • GlobeNewswire Inc. • 06/17/2024 11:30:00 AM
- First Horizon Corporation to Announce Second Quarter Financial Results on July 17, 2024 • PR Newswire (US) • 06/14/2024 08:15:00 PM
- First Horizon Bank Recognized as One of Forbes America's Best Employers for New Grads 2024 • PR Newswire (US) • 05/22/2024 03:00:00 PM
- First Horizon Corporation to Participate at the Morgan Stanley US Financials, Payments & CRE Conference • PR Newswire (US) • 05/21/2024 08:15:00 PM
- Travis LeMonte named Director of Private Client Services of First Horizon Bank • PR Newswire (US) • 05/21/2024 02:00:00 PM
- First Horizon Recognized in 2023 Greenwich Excellence and Best Brand Awards • PR Newswire (US) • 05/20/2024 03:00:00 PM
- FIRST HORIZON RECOGNIZED AS A TOP 100 BEST ADOPTION-FRIENDLY WORKPLACE • PR Newswire (US) • 05/16/2024 02:00:00 PM
- First Horizon Corporation honored as a 2024 VETS Indexes Recognized Employer • PR Newswire (US) • 05/15/2024 03:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 09:28:29 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 09:26:49 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 09:25:05 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 09:24:20 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 09:23:14 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 09:18:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 09:15:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 09:10:13 PM
- First Horizon Signs Statement of Support for the Guard and the Reserve • PR Newswire (US) • 05/09/2024 07:45:00 PM
Glidelogic Corp. Announces Revolutionary AI-Generated Content Copyright Protection Solution • GDLG • Jul 26, 2024 12:30 PM
Southern Silver Files NI43-101 Technical Report for its Updated Preliminary Economic Assessment for the Cerro Las Minitas Project • SSV • Jul 25, 2024 8:00 AM
Greenlite Ventures Completes Agreement with No Limit Technology • GRNL • Jul 19, 2024 10:00 AM
VAYK Expects Revenue from First Airbnb Property Starting from August • VAYK • Jul 18, 2024 9:00 AM
North Bay Resources Acquires Mt. Vernon Gold Mine, Sierra County, California, with Assays up to 4.8 oz. Au per Ton • NBRI • Jul 18, 2024 9:00 AM
Nightfood Holdings Signs Letter of Intent for All-Stock Acquisition of CarryOutSupplies.com • NGTF • Jul 17, 2024 1:00 PM