Bernstein Liebhard LLP Announces Submission Deadline for Investors in BancorpSouth, Inc. to Move for Lead Plaintiff
May 13 2010 - 3:22PM
Business Wire
Bernstein Liebhard LLP 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 (the “Class”) of
BancorpSouth, Inc. (NYSE: BXS) (“BancorpSouth” or the “Company”)
common stock during the period of July 23, 2009 and February 25,
2010, inclusive (the “Class Period”). Defendants are BancorpSouth
and certain of its officers and directors.
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 allegedly
failed to adequately and timely record losses for its impaired
loans, causing its financial statements to be materially false. As
a result of defendants’ allegedly 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 allegedly 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 allegedly failed to maintain proper internal controls
related to its accounting for its loan loss reserves.
Plaintiffs seek to recover damages on behalf of all Class
members who purchased or otherwise acquired shares of BancorpSouth
during the Class Period. If you purchased or otherwise acquired
BancorpSouth shares during the Class Period, and either lost money
on the transaction or still hold the shares, you may wish to join
in the action to serve as lead plaintiff. In order to do so, you
must meet certain requirements set forth in the applicable law and
file appropriate papers no later than July 12, 2010.
A “lead plaintiff” is a representative party that acts on behalf
of other class members in directing the litigation. In order to be
appointed lead plaintiff, the court must determine that the class
member’s claim is typical of the claims of other class members, and
that the class member will adequately represent the class. Under
certain circumstances, one or more class members may together serve
as lead plaintiff. Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead
plaintiff. You may retain Bernstein Liebhard LLP, or other counsel
of your choice, to serve as your counsel in this action.
Bernstein Liebhard has pursued hundreds of securities and
consumer cases and recovered approximately $3 billion for its
clients. It has been named to The National Law Journal’s
“Plaintiffs’ Hot List” in each of the last seven years.
You can obtain a copy of the complaint from the clerk of the
court for the United States District Court for the Middle District
of Tennessee.
Bernstein Liebhard LLP 10 East 40th Street New York, New York 10016
(877) 779-1414
www.bernlieb.com
ATTORNEY ADVERTISING. © 2010 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New York 10016, (212) 779-1414.
Prior results do not guarantee or predict a similar outcome with
respect to any future matter.
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