Shareholder Class Action Filed Against UCBH Holdings, Inc. by the Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP

• Press Release
• Source: Barroway Topaz Kessler Meltzer & Check, LLP
• On 6:43 pm EDT, Wednesday September 23, 2009

SAN FRANCISCO, Sept. 23 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of purchasers of the securities of UCBH Holdings, Inc. (Nasdaq: UCBH - News; "UCBH" or the "Company") from April 24, 2008 through September 8, 2009, inclusive (the "Class Period"), including purchasers of UCBH 8.50% Non-Cumulative Perpetual Convertible Series B Preferred Stock (the "Preferred Stock") pursuant or traceable to the Company's offering on or about June 5, 2008 (the "Offering").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Ramzi Abadou, Esq. or Erik Peterson, Esq.) toll free at 1-888-299-7706 or 1-415-400-3005, or via e-mail at info@btkmc.com.

The Complaint charges UCBH and certain of its officers, directors and underwriters with violations of the Securities Act of 1933 and Securities Exchange Act of 1934. UCBH is the holding company for United Commercial Bank ("UCB"), a state-chartered commercial bank, serving the Chinese communities and American companies doing business in greater China. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) the Company had deliberately concealed millions of dollars in bad loans in order to hide the increasing level of non-performing loans and the full extent of the loan losses; (2) the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (3) the Company lacked adequate internal and financial controls; and (4) as a result of the foregoing, the Company's financial and other statements were false and misleading at all relevant times.

On April 23, 2009, defendants announced that they were significantly increasing the Company's loan loss provisions. The increase was requested due to defendants' failure to properly reserve for loan losses. On May 20, 2009, the Company announced that it would restate its financial results for 2008 and the first quarter of 2009 because "certain loan impairments, and related reserves and charge-offs associated with specific collateral dependent loans and other real estate owned properties which had been analyzed and recorded during the first quarter of 2009, should have been more appropriately recorded and reflected in the fourth quarter of 2008."

Then, on September 8, 2009, the Company stunned investors when it issued a press release stating that UCBH and Company executives had deliberately concealed millions of dollars in bad loans due to an "apparent desire to downplay deteriorating financial conditions by delaying or abating risk rating downgrades and minimizing the Bank's overall loan loss allowance." Upon the release of this news, shares of the Company's stock fell 14.29% on unusually heavy trading volume. All of the Company's above-referenced disclosures, taken together, caused UCBH's stock price to decline by over 60% during the Class Period.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.

For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.

If you are a member of the class described above, you may, not later than November 10, 2009, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

    CONTACT:  Barroway Topaz Kessler Meltzer & Check, LLP
              Ramzi Abadou, Esq.
              Erik Peterson, Esq.
              580 California Street, Suite 1750
              San Francisco, CA 94104
              1-888-299-7706 (toll free) or 1-415-400-3005
              Or by e-mail at rabadou@btkmc.com

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