Class Period: Jul 23, 2009 to Feb 25, 2010
Lead Plaintiff Deadline: Jul 12, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against BancorpSouth Inc., (BXS) ("BancorpSouth" or the "Company") on behalf of all securities purchasers from July 23, 2009 through February 25, 2010, inclusive ("Class Period"), in the United States District Court for the Middle District of Tennessee.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding BancorpSouth, Inc.'s ("BancorpSouth" or the "Company") 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.
Furthermore, 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 purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.