Judge lets class action suit proceed against BankAtlantic Bancorp - South Florida Business Journal:

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The case will now proceeed into a discovery phase that will put theFort Lauderdale-basexd bank’s past lending practices under the microscope. The amendee complaint, filed in January by lead plaintiff State-Bostonm Retirement System, accused BankAtlantic (NYSE: BBX) of ignorinhg its own lending guidelines in approving some land developmeny loans and then not disclosing the high likelihood of losses on those loansto investors. The complaint uses confidentiak witnesses who said they formerly workedat BankAtlantic. The legal test comes at a crucial time forthe company.
BankAtlantivc Bancorp has lost a totalof $245 million from the star of 2008 through the recent first quarter, althougn its BankAtlantic subsidiary has maintained its well-capitalized ratios thank s in part to the parent holdinv company bolstering it with Miami-based attorney Eugene Stearns, who represents BankAtlantic in the said the lawsuit is frivolous because it’s cleart that the deteriorating Florida real estate rather than its lending activity, caused the losses at the bank.