A class action lawsuit has been filed in the United States District Court for the Middle District of Tennessee on behalf of purchasers of BancorpSouth, Inc. (NYSE: BXS) common stock during the period between July 23, 2009 and February 25, 2010 (the “Class Period”). 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.
If you are a current shareholder or purchased shares between July 23, 2009 and February 25, 2010 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.