Birmingham, Alabama –
BIRMINGHAM, Ala. (AP) - Regions Financial Corp.'s chief
executive and board are accused in a lawsuit of mismanagement that
allegedly resulted in stock losses from $38 to $5 a share.
David N. Lichtenstein, a judge in the Jefferson County Circuit
Court's criminal division and owner of a stock fund that holds
Regions share, filed the lawsuit in the court's civil division this
Lichtenstein blames Regions' Chief Executive Dowd Ritter and the
board for failing to take action to prevent shares from falling
since 2006. The judge's attorney says the suit is a so-called
"derivative action," with any financial relief going to the
company rather than shareholders.
Regions spokesman Tim Deighton said the suit is "without
merit" and the bank plans "a vigorous defense."
(Copyright 2009 by The Associated Press. All Rights Reserved.)