First Union Corp. shareholders have filed a class action against the banking company, alleging that its officials made false and misleading statements about earnings and the takeover of Money Store Inc. and CoreStates Financial Corp.
First Union cut its profit forecast last month because of difficulties in merging its operations with CoreStates, which it bought in April 1998 for $19.8 billion. The bank also has had problems integrating Money Store, which it bought last June for $2.1 billion.
First Union's stock price has dropped 28% this year. The company's officials were not available to comment.
The law firm Meredith Cohen Greenfogel & Skirnick announced Tuesday that it had filed suit in U.S. District Court for the Eastern District of Pennsylvania on behalf of shareholders who bought their stock from Aug. 14, 1998, through May 24.
The suit charges First Union and some of its officers and directors with violations of the Securities Exchange Act of 1934.