Wolf Popper LLP Files Securities Fraud Class Action Against Doral Fina

NEW YORK, April 22 /PRNewswire/ -- Wolf Popper LLP has filed a securities fraud class action complaint against Doral Financial Corporation ("Doral" or the "Company") and three of its senior officers on behalf of purchasers of Doral securities from May 15, 2000 through April 19, 2005, inclusive (the "Class Period"). A copy of the complaint is available from the U.S. District Court for the Southern District of New York and on Wolf Popper's website (http://www.wolfpopper.com/).

Plaintiff alleges that the defendants misrepresented Doral's operating results and financial condition to public investors by overstating Doral's reported assets by $400 million to $600 million, and inflating Doral's reported earnings by $290 million to $435 million, in contravention of generally accepted accounting principles.

The true facts emerged on April 19, 2005, when Doral issued a press release, announcing a restatement of its earnings. The April 19, 2005 press release disclosed that the Company had incorrectly valued its floating rate interest-only strips ("IO strips" and "IOs"), and that "a substantial adjustment to the value of its floating rate IOs was required." According to the press release, Doral had over-valued its floating rate IOs by $400 million to $600 million, and the required restatement of its financial statements for some or all of the periods from January 1, 2000 through December 31, 2004 would reduce its earnings during such periods by $290 million to $435 million.

The disclosure caused the Company's stock price to decline from its high of $49.45 on January 18, 2005 to close at $15.74 on April 20, 2005 - a 68.2% decline, causing significant aggregate damage to the investing public.

Wolf Popper has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by the courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations.

Any member of the class (who purchased Doral securities during the period from May 15, 2000 through April 19, 2005) who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than June 20, 2005. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff, you may call or write:

Wolf Popper LLP, Michael A. Schwartz, Esq. 845 Third Avenue, New York, NY 10022-6689 Tel.: 212.451.9668, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704 Email: irrep@wolfpopper.com; website: http://www.wolfpopper.com/