Dyer & Berens LLP Files Class Action Lawsuit on Behalf of Investors Who Purchased or Acquired Colonial BancGroup, Inc. Securities Between 1/23/08 and 1/27/09; Announces Upcoming Investor Deadline

DENVER, CO--(MARKET WIRE)--Mar 16, 2009 -- Dyer & Berens LLP (www.DyerBerens.com) today announced that it has filed a class action lawsuit in the United States District Court for the Middle District of Alabama on behalf of The Colonial BancGroup, Inc. ("Colonial" or the "Company") (NYSE:CSB - News) (NYSE:CNB - News) investors who purchased or otherwise acquired the Company's securities between January 23, 2008 and January 27, 2009, inclusive (the "Class Period"). The complaint charges Colonial and certain of its officers and directors with violations of the federal securities laws.

If you wish to serve as a lead plaintiff, you must move the Court no later than April 10, 2009. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jeffrey A. Berens, Esq. at (888) 300-3362, (303) 861-1764, or via email at jeff@dyerberens.com. Members of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain absent class members.

The complaint alleges that, during the Class Period, defendants made false and misleading statements to the market about the Company's business and financial results. For example, defendants allegedly failed to disclose that: (i) the Company was failing to adequately reserve for mortgage related exposure; (ii) the Company was failing to write down impaired goodwill; (iii) the Company's internal controls were inadequate; (iv) the Company's exposure to troubled assets was not isolated to its residential construction portfolio; (v) the Company's exposure to the problems in the real estate market had not been limited by the actions the Company had taken in 2006; (vi) the Company's capital base was not adequate enough to withstand the significant deterioration in the real estate market; (vii) given the increased volatility in the real estate market, the Company had no reasonable basis to make projections about its non-performing assets, its net charge-offs and its ability to liquidate its troubled loan portfolio, and, as a result, the Company's projections were at a minimum reckless; and (viii) the U.S. Government's approval to provide Colonial with $550 million in funding as announced on December 2, 2008 was conditioned upon Colonial raising an additional $300 million in capital from outside sources. As a result of defendants' false statements, Colonial stock traded at artificially inflated prices, reaching above $16 per share in February 2008.

Then, on January 27, 2009, after the market closed, Colonial announced its full year and fourth quarter 2008 financial results, and further disclosed that its receipt of funds from the U.S. Treasury's Capital Purchase Program ("TARP") was conditioned upon the Company raising an additional $300 million in equity. In response, Colonial's stock price plummeted more than 45% to close at $0.85 per share on January 28, 2009.

Plaintiff seeks to recover damages on behalf of certain Colonial investors. The plaintiff is represented by Dyer & Berens LLP, which has expertise in prosecuting investor class actions involving financial fraud. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. For more information about the firm, please go to www.DyerBerens.com.

     Contact:
      
     Jeffrey A. Berens
     Dyer & Berens LLP
     682 Grant Street
     Denver, CO  80203
     Tel: (888) 300-3362 or (303) 861-1764
     Email: Email Contact
     Website: http://www.DyerBerens.com