According to a press release there is currently an ongoing investigation on behalf of former and current employees of Colonial BancGroup Inc. (NYSE:CNB) concerning potential Employee Retirement Income Security Act (ERISA) Breach of Fiduciary Duty.

Colonial BancGroup Inc. (NYSE:CNB) has been accused of securities fraud and according to a press release under ERISA employees (former and current) of Colonial BancGroup Inc. (NYSE:CNB) may be eligible to file a ERISA complaint for putting stock options at risk if they can prove their employer violated its fiduciary duty to them. The Fiduciary duty refers to a companys responsibility to the people who invest in it and if an employer puts the companys interest ahead of the investors, it has broken its fiduciary duty., so the investigation. ERISA, so the press release, is a federal law that sets minimum standards for pension and health plans set up by private businesses and ERISA was designed to protect people who participate in employee benefit plans, including employees with stock options in a company.

An investor in Colonial BancGroup, Inc.( NYSE: CNB) shares has filed a proposed securities class action lawsuit in the U.S. District Court for the Middle District of Alabama on behalf of all persons or entities who purchased the securities of Colonial BancGroup, Inc.( NYSE: CNB) from December 2, 2008 through January 27, 2009 against Colonial BancGroup, Inc. and certain of its officers over alleged violations of securities laws. According to the complaint the plaintiff alleges that Colonial BancGroup, Inc. (Colonial) and certain of its officers violated the federal securities laws by disseminating materially false and misleading statements contained in a press release and a related filing with the Securities and Exchange Commission concerning the Colonial's participation in the Troubled Asset Relief Program ('TARP'). During the trading day on December 2, 2008, Colonial issued a press release announcing that it had received TARP funding approval for an injection of $550 million. The press release also detailed the purported terms of the TARP funding with the United States Treasury Department including that the government would received preferred stock as well as warrants to purchase Colonial common stock. In response to that announcement Colonial's stock price surged over 50 % from its $2 per share close on December 01, 2008 to close at $3.08 per share on December 2, 2008. According to the complaint, Colonial did not disclose that it would be required to raise additional outside capital of $300 million before it could receive the $550 million in TARP funding. The plaintiff alleges that Colonial disclosed that material fact after the markets closed on January 27, 2009 and as a result to that announcement, Colonial's stock (NYSE:CND) price plunged from its close of $1.58 on January 27, 2009 to $0.85 the next trading -- a 46% drop -- on extraordinary volume exceeding 26 million shares.