Cases

Raymond James Financial, Inc. Securities Fraud Class Action

Gardy & Notis, LLP has filed a class action lawsuit on behalf of purchasers of Raymond James Financial, Inc. (NYSE: RJF) common stock during a class period of April 22, 2008 and April 14, 2009.

The complaint charges Raymond James Financial and its CEO and CFO with violating the federal securities laws by issuing a series of materially false and misleading statements regarding the company's supposedly conservative management practices and avoidance of risky assets associated with subprime residential mortgages. Raymond James Financial understated the credit risks of its wholly owned subsidiary's commercial and residential loan portfolios, and failed to set aside adequate reserves for the losses that Raymond James Financial knew, or recklessly disregarded, were forthcoming. On April 14, 2009, Raymond James Financial shocked investors when it announced that results for the second fiscal quarter ended March 31, 2009, would be well below the consensus analysts' estimates. Raymond James Financial also announced that both its commercial and residential portfolios would require higher loss reserves, with the loan loss provision tripling from the previous quarter. In response to such an unexpected sharp increase in loan loss provisions, Raymond James Financial common stock dropped $2.57 per share, or 13.48%, to close at $16.49 per share on April 15, 2009.

For more information regarding the lawsuit or to obtain a copy of the complaint or any Court filings, please contact us.