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Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Suffolk Bancorp

^{Published on 2011-10-20 14:24:48 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/suffolkbancorp/ ]) today announced that a class action has been commenced in the United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of Suffolk Bancorp (aSuffolka or the aCompanya) (Nasdaq: SUBK) between March 12, 2010 and August 10, 2011, inclusive (the aClass Perioda).

"should no longer be relied upon due to an understatement of its allowance for loan losses in such periods."

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, Samuel H. Rudman or David A. Rosenfeld 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/suffolkbancorp/ ]. 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 Suffolk and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Suffolk is a bank holding company with one direct wholly-owned subsidiary, Suffolk County National Bank (the aBanka), a nationally chartered commercial bank that operates 30 full-service offices throughout Suffolk County, New York. The Company maintains its headquarters in Riverhead, New York.

The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Companya™s business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that the Companya™s financial results were artificially inflated due to the material understatement of Suffolka™s loan loss reserves; (ii) that the Companya™s financial results were artificially inflated due to a failure to recognize its impaired assets; (iii) that the Companya™s internal and disclosure controls were materially deficient; and (iv) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth.

On August 10, 2011, the Company issued a press release announcing its inability to file its quarterly results with the SEC on Form 10-Q and reporting its expected results for the quarter ended June 30, 2011. In addition, on that date, the Audit Committee of the Companya™s Board of Directors concluded that Suffolka™s previously issued financial statements as of and for the year ended December 31, 2010, the quarter ended December 31, 2010 and the quarter ended September 30, 2010, as reported in Suffolka™s Annual Report on Form 10-K and Quarterly Report on Form 10-Q, respectively, ashould no longer be relied upon due to an understatement of its allowance for loan losses in such periods.a As a result of these disclosures, the price of Suffolk stock declined more than 11.3%, closing at $9.16 per share on August 10, 2011.

Plaintiff seeks to recover damages on behalf of all purchasers of Suffolk 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.