Mark Neuman Emails to Me.. about the Form 10-K Report Filed with the SEC.

Thu, February 25, 2010 7:42:00 PM


"" At the bottom is the link to the Form 10-K report.

But here is the disclosure in Umpqua's 12/31/09 financials statements under "Legal Proceedings" regarding the two lawsuits filed by Padrick and the Umpqua creditors (they are really the same lawsuit, I think because there was a possibility of a problem with the lawsuit that Padrick filed). Hmmm.... see the sections I highlighted below.

They convinced the auditors to agree that resolving won't have a material effect.

ITEM 3. LEGAL PROCEEDINGS.

On June 19, 2009, in the Circuit Court of the State of Oregon for Multnomah County, Kevin D. Padrick, Trustee of the Summit Accommodators Liquidating Trust, as plaintiff, filed a complaint seeking damages of at least $30 million from Umpqua Bank.

Plaintiff alleges that the Bank’s provision of banking services to Summit Accommodators, Inc. (“Summit”), a 1031 exchange accommodator, aided and abetted the principals of Summit to breach their fiduciary duty to Summit.

Based on the allegations in the complaint and our understanding of the relevant facts and circumstances, we believe that the claim is without merit and the Company is vigorously defending the claim.

On September 10, 2009, Danae Miller and fifty-seven additional plaintiffs, who are creditors in the Summit bankruptcy, filed a complaint in Multnomah County Circuit Court seeking damages of at least $30 million from Umpqua Bank.

Plaintiffs make allegations that are similar to the allegations made by Padrick, i.e. that the Bank’s provision of banking services to Summit aided and abetted Summit’s breach of fiduciary duty to plaintiffs.

Like the Padrick case, we believe that this claim is without merit and the Company is vigorously defending the claim.

No loss accrual has been made for either of these claims in the accompanying audited consolidated financial statements.

In addition, due to the nature of our business, we are involved in legal proceedings that arise in the ordinary course of our business.

While the outcome of these matters is currently not determinable, we do not expect that the ultimate costs to resolve these matters will have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

Read more:
http://www.faqs.org/sec-filings/100219/UMPQUA-HOLDINGS-CORP_10-K/#tx94152_6#ixzz0gbbbbEOP

Mark ""

Folks, there seems to be alot more to the Summit 1031 and Umpqua Bank Connection. I Say Dig Deeper, Way Deeper..

Crystal L. Cox
Investigative Blogger