Shareholders Sue CalFed Officers: A shareholders’ class-action...
From Times Staff and Wire Reports
Shareholders Sue CalFed Officers: A shareholders’ class-action lawsuit was filed against four current and former top officers of California Federal Savings & Loan’s parent, alleging that they misrepresented its financial condition to maintain high stock prices. The suit, filed in U.S. District Court in Los Angeles, was on behalf of investors who purchased common stock in CalFed Inc. between Jan. 1, 1987, and last Friday. It alleges that the company misrepresented its financial condition in reports to the Securities and Exchange Commission filed from 1986 to 1989. Last Friday, CalFed reported a net loss of $92.3 million for its third quarter.
