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. (“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
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Contact Information
U. Seth Ottensoser
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
http://www.bernlieb.com/
(212) 779-1414
