Business & Finance
Fri, May 14, 2010Thu, May 13, 2010Wed, May 12, 2010Tue, May 11, 2010Mon, May 10, 2010Robbins Geller Rudman & Dowd LLP Files Class Action Suit against BancorpSouth, Inc.
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Published in Business and Finance on Wednesday, May 12th 2010 at 13:31 GMT by Market Wire🞛 This publication is a summary or evaluation of another publication
SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/bancorpsouth/ ]) today announced that a class action has been commenced in the United States District Court for the Middle District of Tennessee on behalf of purchasers of BancorpSouth, Inc. (aBancorpSoutha) (NYSE:BXS) common stock during the period between July 23, 2009 and February 25, 2010 (the aClass Perioda).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/bancorpsouth/ ]. Any member of the putative 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.
The complaint charges BancorpSouth and certain of its officers and directors with violations of the Securities Exchange Act of 1934. BancorpSouth is a financial holding company.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companya™s business and financial results and engaged in improper behavior that harmed BancorpSoutha™s investors by failing to disclose the extent of seriously delinquent commercial real estate loans and construction and land loans. The Company also failed to adequately and timely record losses for its impaired loans, causing its financial statements to be materially false. As a result of defendantsa™ false statements, BancorpSoutha™s stock traded at artificially inflated prices during the Class Period, reaching a high of $25.13 per share on October 14, 2009.
On February 25, 2010, after the market closed, BancorpSouth announced that it would be postponing the filing of its Form 10-K with the SEC for the year ended December 31, 2009, in order to further review its allowance for credit losses and their impact on the Companya™s results. BancorpSouth further reported that based on its review, it expected to adjust its previously reported financial results for the quarter and year ended December 31, 2009 to decrease net income. On this news, BancorpSoutha™s stock fell $3.10 per share to close at $19.47 per share on February 26, 2010, a one-day decline of over 13% on high volume, and a decline of 23% from the stocka™s Class Period high.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) defendants failed to properly account for BancorpSoutha™s construction and commercial real estate loans, failing to reflect impairment in the loans; (b) defendants had not adequately reserved for BancorpSoutha™s loan losses such that its financial statements were presented in violation of Generally Accepted Accounting Principles; and (c) the Company failed to maintain proper internal controls related to its accounting for its loan loss reserves.
Plaintiff seeks to recover damages on behalf of all purchasers of BancorpSouth common stock during the Class Period (the aClassa). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.
