A current long term investor filed a lawsuit in Federal Court on behalf of current investors of BB&T Corporation NYSE:BBT) alleging breaches of fiduciary duty by certain current and former members of the BB&T board of directors and certain current and former executive officers.
The plaintiff alleges that certain current and former members of the BB&T board of directors and certain current and former executive officers “breached their fiduciary duties by, among other things, knowingly causing and/or knowingly allowing Company brokers and or brokers of BB&T subsidiary Scott & Stringfellow, Inc […] to make false statements to customers and omit material information in connection with the sale of auction rate securities”. Through misrepresentations and omissions, directors of BB&T Corp., through its subsidiary Scott & Stringfellow, left customers holding $667 million in illiquid auction rate securities from BB&T and Scott & Stringfellow, so the lawsuit. BB&T Corporation is a financial holding company. BB&T conducts its business operations primarily through its commercial banking subsidiary, Branch Banking and Trust Company. BB&T Corporation is located in Winston-Salem, North Carolina and had $152billion in total assets with a net income of $1.519Billion in 2008. Shares of BB&T Corporation (NYSE:BBT) traded at $32.47 per shares recently, reached over $41 in September 2008 and during in 2007.