THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, April 4, 1995 TAG: 9504040304
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Short : 46 lines
Individuals who bought stock in Dominion Bankshares Corp. between early 1989 and mid-1990 may be eligible to share more than $3 million from a court-approved settlement.
However, claimants must file an application form and provide supporting documents by May 1 to the Philadelphia company overseeing distribution of the funds.
Most of those eligible to share in the settlement have received the necessary forms, said Arthur Strickland, one of the attorneys who represented shareholders in their suit against Dominion.
But some shareholders whose Dominion stock was held in ``street'' names at brokerage firms apparently have not gotten the forms, he said.
Roanoke-based Dominion, whose assets included an abundance of sour loans on commercial real estate, suffered heavy losses and a depressed stock price in the early 1990s. It was acquired in 1993 by First Union Corp. of Charlotte.
The recently approved settlement ended five years of litigation in U.S. District Court in Roanoke, where disgruntled Dominion shareholders contended they lost money on their stock. The plaintiffs alleged that Dominion had issued inaccurate statements about its financial condition.
Although the court approved a settlement totaling $5 million, more than $1 million will go to plaintiffs' attorneys for their fees and expenses. The per-share amount being distributed to eligible shareholders will depend partly on how many claims are filed, Strickland said.
To be eligible for payment, an investor must have purchased Dominion shares between March 6, 1989, and July 17, 1990, and suffered a loss on the shares. The amount of a loss would be the difference between the price that an investor paid and $10.75, the closing price of Dominion's shares on July 17.
Shareholders who bought Dominion shares during the stated period for more than $10.75 a share but did not sell them still would be eligible to participate in the settlement, Strickland said.
Shareholders who have not received the claim application can obtain copies by contacting Michael T. Bancroft at Heffler & Co., P.O. Box 1230, Philadelphia, PA 19105-1230, or by calling the company at (215) 665-8870. by CNB