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Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C.

10b9db026d89119e951a851045ac17eee7784f79

Written/Reviewed By:

Barry S. Kantrowitz, Esq.

Last Updated: Apr 28, 2026

Read Time: 3 mins

In this action, plaintiff asserts claims on behalf of a class which has been certified by the Court and, as certified, consists of all persons or entities who exchanged shares of Summit Bancorp (“Summit”) common stock for shares of FleetBoston Financial Corporation (“FBF” or the “Company”) common stock in connection with the merger between FBF and Summit (the”Merger”), and pursuant to the registration statement and prospectus filed by FBF on or about January 25, 2001 (the “Merger Registration Statement” or “Registration Statement”) for the shares it would be issuing in connection with the Merger (the “Class”), and who sold such FBF stock between December 21, 2001 and November 7, 2003. The action commenced in September 2002, seeks to pursue remedies for violations of the Securities Act of 1933 (the “Securities Act”).

FBF operated a substantial banking business in Argentina. In connection therewith, FBF failed to reveal that it was under-reserved with respect to its Argentina portfolio and had engaged in issuance of loans which would give rise to substantial losses if the convertibility between the U.S. Dollar and Argentine Peso was broken. In fact, that break in convertibility occurred, the under-reserve became revealed to the general public and substantial losses occurred after the Summit Bank merger and stock swap. In addition, FBF engaged in various off-the-books loan transfers and financial transactions which were allegedly designed to improperly manage (e.g., reduce) the losses which FBF was required to report.

After the fact s concerning FBF’s Argentine losses, increased nonperforming loans and under-reserve were revealed, FBF announced that it would take a charge of $675 million related to the deteriorating Argentine economy, in addition to $251 million in “translation losses” due to the falling Peso, bringing total charges relating to the Argentine situation for the second quarter to $925 million. As a result of these actions, as of April 2003, FBF had taken cumulative charges of approximately $2.3 billion since the beginning of the Argentine crisis. In addition, during the second quarter of 2002, the Company placed all sovereign-related assets and a significant portion of private sector loans on nonaccrual status. At June 30, 2002, total nonperforming assets in Argentina amounted to $2.0 billion, which represented over 50% of all of FBF’s non-performing assets. At June 30, 2002, FBF’s reserve for credit/losses amounted to $3,867 million, of which approximately one-third related to Argentina. (Amended Complaint, & 138).

After the disclosure of the problems at FBF, the price of FBF common stock declined to trade in a range of $23-24 per share. After the commencement of this action, the Court appointed as Co-Lead Counsel the firms of Stull, Stull & Brody, Weiss & Lurie and Lerach Coughlin Stoia Geller Rudman & Robbins, LLP and the firm of Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. as Liaison Counsel. Thereafter, the defendants moved to dismiss the complaint on two occasions both of which were denied. On December 22, 2005, the Court certified the litigation class. The matter is currently proceeding through litigation.

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   LWelsh 
 1 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Clever and efficient.
  
 
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   Kenny Perlow 
 22 days ago
 
 
 Trustindex verifies that the original source of the review is Google. KGG Law, and Barry Kantrowitz in particular, set the bar high for what a thorough, practical, strategic, compassionate and smart lawyer can be. Everything about Barry's advice and representation was exemplary and the stress mitigation that resulted was invaluable. On top of that, the ultimate result Barry achieved was beyond what was reasonable to expect and we are forever grateful. Often, people say that you hire a lawyer to prevent a problem. Sometimes, unfortunately, you need an attorney to solve a problem and I could not recommend Barry and his firm any more highly in that regard.
  
 
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   Aliza Ali 
 86 days ago
 
 
 Trustindex verifies that the original source of the review is Google. My dad had a great experience with this law firm. From the very beginning, the team was professional, knowledgeable, and always willing to answer our questions. They kept us informed throughout the entire process and made what could have been a very stressful situation much easier to handle. We truly appreciated their dedication, honesty, and hard work. Thanks to their support, my dad felt confident every step of the way. We are very grateful for everything they did and would highly recommend this firm to anyone looking for reliable legal representation.
  
 
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   Jana Montero 
 89 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I had a wonderful experience working with Sam Smith. He was very responsive, thorough, and easy to work with from start to finish. He walked me through everything clearly and made what started as a very stressful situation for me into something completely manageable. I would not hesitate to recommend him and the firm!
  
 
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   Mike Sakmann 
 95 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I sought legal advice regarding an employment matter and had an excellent experience working with Sam Smith, Esq. at KGG Law. Sam was thorough, attentive, and took the time to listen carefully to my concerns before providing clear, thoughtful guidance. I appreciated the professionalism and care shown throughout the process, and I would confidently recommend KGG Law to anyone in need of legal assistance.
  
 
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   Liz Hecker 
 101 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I can't say enough about this firm. They manage to comfort you during the whole legal process while staying professional and doing what is right. I would recommend them to anyone and also hire them again if I need legal help.
  
 
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   Brandy Miller 
 124 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Kate is the best. She helped me very quickly, and was very attentive with all of my needs. So thankful for her
  
 
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   Mike Greenspan 
 137 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Kate Carballo is a dedicated, passionate, and creative attorney whom I had the pleasure to lecture with at a state trial lawyer's conference. Kate's lecture demonstrated how she uses her innovative and "out-of-the-box thinking" to achieve outstanding results for her injured clients. That Kate is certified by the Supreme Court of New Jersey as a civil trial attorney is a testament to her skills, experience and commitment to excellence.
  
 
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   Jonathan Sampson 
 144 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Was referred to KGG law by a friend and could not have asked for better legal representation. They walked me through every step of the process after my accident and began every call with “ how are you feeling” which was just one example of how much they care about their clients. They handled my case very efficiently, professionally and courteously. My attorney Kate Carballo was a rock star! So clearly experienced, she consistently made me feel at ease with the process. Highly recommend
  
 
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   Vinnie Kung 
 147 days ago
 
 
 Trustindex verifies that the original source of the review is Google. We had a great experience with the team at KGG Law. While it was a traumatic time for our family, they made it very easy for us and explained all of our options. They even performed due diligence to make sure that after our settlement, there would be no further issues which I think is even more important than the settlement itself. Thank you!

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