Robbins Geller Rudman & Dowd LLP Files Class Action Suit against BancorpSouth, Inc.
May 12 2010 - 4:21PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(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. (“BancorpSouth”) (NYSE:BXS) common stock during
the period between July 23, 2009 and February 25, 2010 (the “Class
Period”).
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 plaintiff’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
Company’s business and financial results and engaged in improper
behavior that harmed BancorpSouth’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
defendants’ false statements, BancorpSouth’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 Company’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, BancorpSouth’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 stock’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 BancorpSouth’s construction and commercial real estate
loans, failing to reflect impairment in the loans; (b) defendants
had not adequately reserved for BancorpSouth’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 “Class”).
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.
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