BankAtlantic Bancorp Inc. executives misled shareholders about the riskiness of the bank's portfolio real estate loans during the economic downturn in 2007, a Miami jury ruled in a case of fraud actions brought by investors.
Jurors in federal court deliberated three days before finding today that BankAtlantic officials ignored the loan guidelines in approving loans for land development, and then misrepresented problems with the deals on wheels press and telephone conferences. The panel said BankAtlantic to pay $ 2.41 per share for damages to investors who sought to $ 3.52.
"The jury had no hesitation in holding that the defendants liable for making false and misleading statements about subprime loans," said Mark Arisohn, a lawyer for the plaintiffs. "It was important for shareholders to...