First BanCorp Settles Securities Class Action

The following was first published on 3/5 over at Securities Litigation Watch, my new blog.

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Today, First BanCorp (NYSE: FBP) announced that it had reached an agreement in principle to settle the securities class action pending against the company and certain officers and directors in the United States District Court for the District of Puerto Rico for $74,250,000.

The Plumbers & Pipefitters Local 51 Pension Fund and two individuals are lead plaintiffs and Lerach Coughlin Stoia Geller Rudman & Robbins LLP and Zwerling Schachter & Zwerling are co-lead counsel in the First BanCorp securities class action.

A quick search of the SCAS database reveals that this is the largest securities class action settlement ever in the District of Puerto Rico.

It also appears that the the First BanCorp litigation is one of only two securities class actions filed in the District of Puerto Rico since the PSLRA was enacted. The other case, on behalf of shareholders in Pepsi-Cola Puerto Rico Bottling Co. (n/k/a PepsiAmericas, Inc. (NYSE: PAS)) was settled in 1997.

The District of Puerto Rico can now be added back to the list of Federal courts without an active securities class action.

Thanks to Werner Kranenburg (With Vigour and Zeal) for the tip.