Helfer

*1119 BACKGROUND

Plaintiff First Pacific Bancorp, Inc. (“Bancorp”), a Delaware corporation, is a one-bank holding company and the sole shareholder of First Pacific Bank (“the Bank”). Plaintiffs Ada P. Sands, Leonard S. Sands and Michael Zugsmith are shareholders of Bancorp.

On August 7, 1990, the California Department of Banking appointed the Federal Deposit Insurance Corporation (“FDIC”) as Receiver for the Bank. Sometime around May 7, 1996, nearly six years after the Bank went into receivership, the FDIC notified Plaintiffs that it was terminating its receivership of the Bank. Along with the notice, the FDIC gave Plaintiffs two pages of unaudited financial information covering the period from August 10, 1990, through December 31, 1995. One report was entitled “Statement of Financial Condition,” and reported the assets, liabilities, and equity of the bank as of August 10, 1990 and as of December 31, 1995. The other statement, “Financial Condition and Liquidation Activity,” reported aggregated amounts of receipts and disbursements of the Bank between August 10, 1990, and December 31, 1995. 1 The information contained in these two skeletal reports spanned a period of over five…