Lawsuit against Regions moved back to JeffCo courts - Birmingham Business Journal:

ogarawo.wordpress.com
A federal court determined Thursday the case filed by the Louisiansa Municipal Police Retirement System belongs inlocalp courts, one week aftee Regions pushed for it to be heardd in federal court. Stilol at stake is the previous Jefferson County ruling that froze RegionsFinancial Corp. executives’ compensationh until the lawsuit is In the pension fund lawsuit filedin May, the retirement systekm claimed Regions executives misled investors through “falsification of Regions financial statements” aboutf its acquisition of AmSouth Bancorp. On June 23, Jeffersonj County Circuit Court JudgerHouston L.
Brown froze awards and compensation paid to Region s executives forits $10 billion acquisition of AmSouth Bancorp, but that was overturned when the case was movef to federal court. U.S. District Judged Inge Prytz Johnson remanded the case back to Jeffersohn County Circuit Court but retained a temporary restraining order on thecompensation freeze. In an e-maile d statement, Regions noted the judge “foundc the temporary restraining order questionable at best and expressed concerjn about an order granted against unnamed and unidentified parties.
” The original ordedr would have blocked “tens of millions of worth of incentive pay awardesd the company’s top 25 for 2006-2008, according to court documents. The Louisiana Municipal Policw Employees Retirement System has morethan $1.6 billiohn in assets. Its lawsuit makes specific allegationsregarding Regions’ actions during its acquisitioj of AmSouth including: • A Securitiees and Exchange Commission merger filing falsely reported the valuse of the combined entity’s assets, loanxs and shareholder equity. • Regions falsely reported its goodwill balancwe in March 2007 SEC filing for end ofyear $11.6 billion goodwill balance.
• In April Regions’ assets and shareholders’ equity was falselhy stated. • Regions said its thirc quarter 2008 goodwill was unimpairede then in January 2009reportexd $5.6 billion loss “driven largelyy by $6 billion, non-cash charge for impairment of goodwill.”