SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a securities class action lawsuit has been filed in the Eastern District of Michigan on behalf of purchasers of Sterling Bancorp, Inc. (NASDAQ:SBT) common stock between November 17, 2017 and December 8, 2019 (the “Class Period”), including purchasers pursuant to Sterling’s November 17, 2017 initial public offering (“IPO”). The case is captioned Oklahoma Police Pension and Ret. Sys. v. Sterling Bancorp, Inc., No. 20-cv-10490, and is assigned to Judge Arthur J. Tarnow. The Sterling securities class action lawsuit charges Sterling, certain of its officers and directors, and the underwriters of its IPO with violations of the Securities Exchange Act of 1934 and/or the Securities Act of 1933.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Sterling common stock during the Class Period, including purchasers pursuant to Sterling’s IPO, to seek appointment as lead plaintiff in the Sterling securities class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Sterling securities class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Sterling securities class action lawsuit. An investor’s ability to share in any potential future recovery of the Sterling securities class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Sterling securities class action lawsuit or have questions concerning your rights regarding the Sterling securities class action lawsuit, please visit our website by clicking here or contact Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at bcochran@rgrdlaw.com. Lead plaintiff motions for the Sterling securities class action lawsuit must be filed with the court no later than April 26, 2020.
Sterling is the unitary thrift holding company of Sterling Bank and Trust. Sterling specializes in residential mortgages but offers a broad suite of products to the residential and commercial markets as well as retail banking services. Sterling’s largest lending product is its Advantage Loan program, which is responsible for a majority of Sterling’s loans.
On October 19, 2017, Sterling filed a Registration Statement on Form S-1 with the SEC in connection with its IPO. The Registration Statement (including amendments) was declared effective on November 16, 2017, and on November 17, 2017, Sterling filed the Prospectus for the IPO and commenced selling a total of 17.25 million shares of common stock at $12 per share, including the exercise of the underwriters’ overallotment. The IPO was completed on December 4, 2017 for total gross proceeds of $207 million.
The Sterling securities class action lawsuit alleges that, throughout the Class Period and in the offering documents for the IPO, defendants made untrue statements of material fact or omitted other facts necessary to make the statements made not misleading and failed to disclose material facts concerning, inter alia, Sterling’s loan underwriting, risk management and internal controls, including repeatedly touting its strict underwriting, asset quality, and the Advantage Loan program. As a result of defendants’ false statements and/or omissions, the price of Sterling common stock was artificially inflated to more than $14.50 per share during the Class Period.
Then on December 9, 2019, Sterling disclosed that it had “voluntarily and temporarily suspended its Advantage Loan program in connection with an ongoing internal review of the program’s documentation procedures.” According to Sterling, “[m]anagement believes it is prudent to temporarily halt the program as it continues to audit documentation on past loans and puts in place additional systems and controls to ensure the Bank’s policies and procedures are followed on loans originated under the program.” On this news, the price of Sterling common stock fell $2.16 per share to close at $7.29 per share, a one-day decline of more than 22% and a decline of nearly 40% from the stock’s IPO price.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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