LOL- MBNA defendant in securities fraud case! [View All]

[Mandate My Ass]

They did an Enron. Scumbags.

Scott + Scott, LLC Represents Shareholders/Clients in Various Banking and Financial Institution Securities Fraud Cases

Cases Range From Doral Financial Corporation and R & G Financial Corporation to MBNA Corp and Others After it Makes Unprecedented Ascension to Lead Counsel in Halliburton Securities Litigation

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On April 21, 2005, defendants disclosed that MBNA had earned only $0.02 in Q1 2005 -- a 94% decline from the $0.59 per share it reported in Q4 2004 -- and that it was guiding 2005 EPS growth down to "significantly below" its prior 10% growth estimate.

According to the complaint each of the defendants concealed from the investing public during the Class Period that the Company had been experiencing "unexpectedly high payment volumes from U.S. credit card customers" during Q1 2005, reducing managed loans in the quarter "more than in prior years" and of the prepays, the higher interest rate borrowers were prepaying more than the lower interest rate borrowers, resulting in the prepays having a more adverse impact on the Company's yield on managed loans.

......

As a result of these false statements, MBNA's stock traded at inflated levels during the Class Period which permitted the Company's top officers and directors to sell more than $75 million worth of their own shares.

http://news.moneycentral.msn.com/ticker/article.asp?Symbol=US:KRB&Feed=PR&Date=20050506&ID=4795713