Stull, Stull & Brody Announces Class Action Against R&G Financial Corporation

Business Wire, May 26, 2005

NEW YORK -- Notice is hereby given that a class action lawsuit was filed on May 25, 2005 in the United States District Court for the Southern District of New York on behalf of all persons who purchased the publicly traded securities of R&G Financial Corporation ("R&G") (NYSE:RGF) between April 21, 2003 and April 25, 2005, inclusive (the "Class Period") against R&G and certain of its officers and/or directors.

The Complaint alleges that R&G violated the federal securities laws by issuing false or misleading public statements. Specifically, the Complaint alleges that R&G used improper accounting assumptions to value its interest only ("IO") residuals used in securitization transactions. On March 25, 2005, R&G announced that it would restate its financial results for fiscal years 2003 and 2004. Then on April 26, 2005, R&G announced that it was subject to an informal SEC probe relating to its restatement announcement. On this news, shares of R&G fell from a close of $23.18 per share on April 25, 2005, to close at $15.10 on April 26, 2005.

If you are a member of the class you may, no later than June 27, 2005, request the Court appoint you as lead plaintiff. 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. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in both New York and Los Angeles.

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 Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, or by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.