Finkelstein Thompson LLP is currently investigating potential shareholder claims involving Colonial BancGroup, Inc. (“Colonial” or the “Company”) (NYSE: CNB) and certain of its officers and directors.

On December 2, 2008, Colonial announced that it had received Troubled Asset Relief Program (“TARP”) funding approval of $550 million. In response to that announcement, the Company’s stock price surged to $2 per share. Colonial, however, failed to disclose that as a prerequisite to receiving the funding, the Company would have to raise outside capital of $300 million. When Colonial finally announced this condition after the markets closed on January 27, 2009, the Company’s stock price plunged from a close of $1.58 on January 27, 2009 to $0.85 the next trading day – a 46% drop on volume exceeding 26 million shares.

If you purchased Colonial securities during the period of December 2, 2008 through January 27, 2009, please contact Finkelstein Thompson’s Washington, DC offices at (877) 337-1050 or by email at This email address is being protected from spam bots, you need Javascript enabled to view it .