GON
$150 Site Donor 2025
If interested, here is the bank holding company that I was burned by. Had 40k usd worh of stock, it went to essentially zero. All while the corporate directors walked away with crown jewel.
The original complaint charges that Reliance, the Taylor family, certain other insiders, its auditors and its financial advisors inflated the assets and income of the Company's subprime auto loan business by grossly understating its bad loan reserve thereby defrauding purchasers of Reliance stock during the Class Period in violation of the Securities Exchange Act of 1934 and state law. This enabled the Taylor family to induce shareholders to approve a split-off to the Taylors, Reliance's dominant shareholders, of the profitable Cole Taylor Bank subsidiary while leaving the public stockholders with Reliance's Cole Taylor Finance Co. subsidiary. At the time of the shareholder vote defendants represented the finance subsidiary as a rapidly growing and profitable subprime auto loan business when, in fact, it was technically insolvent. The complaint further alleges that only a few days after the February 12, 1997 completion of the spin-off, defendants began to reveal Reliance's problems. In the following nine months, defendants were forced to announce $110 million in charges against income to add to Reliance's loan loss reserves. In light of these belated disclosures, Reliance recently filed for bankruptcy protection. Its stock price plummeted to less than $0.25 per share from its Class Period high of $31.25.
