Sent: 5/27/2009 5:13:32 P.M. Central Daylight Time
Subj: Colonial Bancgroup securities law class action lawsuit
Dear Professor Grundfest,
I have gotten agitated by securities law class action lawsuits in which there is an alleged artificially inflated stock price period by reason of alleged misrepresentations by the corporation and by officers, directors and others, such as accountants. In the class actions, the plaintiff class consists of persons who made stock purchases during the artificially inflated period, possibly from the corporation but more typically on the open market. I have gotten agitated because, if there has been such misrepresentation and an artificially inflated stock price, it seems that there was a windfall gain by the sellers on the open market that corresponds to the loss experienced by the purchasers, the windfall gain is in the pockets of the selling shareholders, and the class action lawsuit against the corporation in the end is only an arbitrary reallocation of losses among non-windfall gain shareholders.
I have tried to write blasting, or at least blistering, letters about these class action lawsuits, addressed to judges and others, dealing specifically with Tyco , Xerox and Monster, Inc.
I am from Alabama and I have learned from your Securities Class Action Clearinghouse website that another one of these class actions is in the works against Colonial Bancgroup, based in Alabama. I assume there are Alabama state and local government retirement plans that own Colonial stock. As an Alabama taxpayer who provides a source of funding for such plans, I intend to write strongly worded letters to Governor Riley, Alabama Attorney General King, and trustees of Alabama governmental retirement plans, to complain vociferously about what is going on in these cases and urging Alabama officials and governmental entities to intervene/object in the Colonial case and complain about the situation to Judge Thompson.
Before I write my letters, I would like to ask you whether you think I am wrong in objecting strongly as I have done and as I plan to do in the Colonial Bancgroup case.