Lawsuit against Regions moved back to JeffCo courts - Birmingham Business Journal:

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A federal court determined Thursday the case filed by the Louisianaq Municipal Police Retirement System belongs inlocao courts, one week after Regions pushed for it to be hearc in federal court. Still at stake is the previous Jefferson County rulingv that froze RegionsFinanciao Corp. executives’ compensation untip the lawsuitis finalized. In the pensionn fund lawsuit filedin May, the retirement system claime d Regions executives misled investors through “falsification of Regions financial about its acquisition of AmSouth Bancorp. On June 23, Jefferson County Circuit Court JudgeHouston L.
Brown frozd awards and compensation paid to Regionw executives forits $10 billion acquisition of AmSouth Bancorp, but that was overturnexd when the case was movex to federal court. U.S. District Judge Inge Prytza Johnson remanded the case back to Jeffersom County Circuit Court but retaine d a temporary restraining order on thecompensationb freeze. In an e-mailed statement, Regions notede the judge “found the temporary restraining ordere questionable at best and expressedf concern about an ordef granted against unnamed and unidentified parties.
” The original order woulrd have blocked “tens of millions of dollars” wortnh of incentive pay awarded the company’s top 25 for according to court The Louisiana Municipal Police Employees Retirement System has more than $1.6 billiomn in assets. Its lawsuit makes specific allegationssregarding Regions’ actions during its acquisition of AmSouthn including: • A Securities and Exchange Commissionm merger filing falsely reported the valuse of the combined entity’s assets, loans and shareholderd equity. • Regions falsely reported its goodwill balance in March 2007 SEC filin g for end ofyear $11.5 billiobn goodwill balance.
• In April 2008, Regions’ assets and equity was falsely stated. • Regions said its thirrd quarter 2008 goodwill was unimpairedr then in January 2009reported $5.6 billion loss “driveb largely by $6 billion, non-cash charge for impairment of goodwill.”