BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Arrow Financial Corporation (“Arrow” or the “Company”) (NASDAQ: AROW) securities between March 12, 2022 and May 12, 2023, inclusive (the “Class Period”). Arrow investors have until August 22, 2023 to file a lead plaintiff motion.
Investors suffering losses on their Arrow investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On March 16, 2023, Arrow disclosed that it would be unable to file its 2022 annual report on time because the Company needed “additional time to complete the assessment of the effectiveness of internal controls over financial reporting.” On this news, Arrow’s stock price fell $0.99, or 3.6%, to close at $26.21 per share on March 17, 2023, thereby injuring investors.
On May 11, 2023, the Company announced that it would not be able to file its first quarter 2023 report on time “because the Company continued to require additional time to complete management’s assessment of the effectiveness of internal controls over financial reporting as of December 31, 2022[.]” On this news, Arrow’s stock price fell $0.33, or 1.7%, to close at $19.59 per share on May 12, 2023.
Then, on April 5, 2023, Arrow disclosed that it had received a notice of non-compliance with the NASDAQ periodic filing requirements due to the Company’s failure to timely file its 2022 report. On May 15, 2023, Arrow announced that it had received a second notice of non-compliance due to its failure to time file its first quarter 2023 report. The Company also disclosed that its “President and Chief Executive Officer and a member of the Board of Directors of Arrow . . . terminated his employment as President and CEO and as a director of the Company and from all other positions he holds with the Company and its affiliates, effective May 12, 2023.” On this news, Arrow’s stock price fell $0.53, or 2.7%, to close at $19.06 per share on May 15, 2023, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Arrow maintained defective disclosure controls and procedures and internal controls over financial reporting; (2) the foregoing increased the risk that the Company could not timely file one or more of its periodic financial reports with the SEC as required by the NASDAQ’s listing requirements; (3) accordingly, Arrow was at an increased risk of being delisted from the NASDAQ; (4) following the disclosure of deficiencies in the Company’s disclosure controls and procedures and internal controls over financial reporting, Arrow downplayed the severity of these issues and the associated risks; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Arrow securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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