A lawsuit has been filed in the California Superior Court for the County of Los Angeles on behalf of purchasers of Bank Plus Corporation (NASDAQ:BPLS) common stock between August 14, 1998 and September 22, 1998 to recover damages caused by defendants' violations of California securities laws and other common law claims. BPC is the holding company for Fidelity Federal Bank, FSB ("Fidelity").

The action alleges that defendants issued false and misleading statements which materially misrepresented the financial condition and future prospects of BPC's affinity credit card program In particular, the complaint alleges that during the Class Period, defendants failed to disclose that: (a) increases in delinquencies and charge-offs threatened the viability of BPC's sub-prime affinity credit card program; (b) BPC's earnings and revenues were being improperly supported by the recognition of billed but uncollectible credit card fee income; (c) BPC would suffer a material reduction in revenues and earnings as the revenue stream from the growth of BPC's sub-prime affinity credit card program was terminated; and (d) BPC was at material risk to have the capitalization classification for Fidelity reduced from a rating of "well capitalized" to a rating of "adequately capitalized" at the end of the third financial quarter of 1998.

As a result of the alleged false and misleading statements, the price of BPC common stock was artificially inflated throughout the Class Period. On the last day of the Class Period when defendants were finally forced to disclose the truth about BPC's affinity credit card program the price of BPC common stock plummeted 25% from $7.25 on September 21, 1998 to close at $5.44 on September 22, 1998 on an extraordinarily high trading.

Update

Pursuant to stipulation of the parties and order of the court, this can has been dismissed. If you have any further questions, please feel free to contact