According to a press release dated February 25, 2010, the complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose: (i) that the Company’s financial results were artificially inflated due to SBI’s material understatement of its loan loss reserves and SBI’s failure to state certain of its assets at their true fair value; (ii) that the Company improperly delayed the recognition of its impaired assets in order to inflate its reported income and asset quality; (iii) that the Company’s internal and disclosure controls were materially deficient; and (iv) that the Company, through its subsidiary, was engaged in unsafe and/or unsound banking practices.
On February 1, 2010, SBI issued a press release announcing its fourth quarter and full year 2009 results, which included a loss of $19.8 million for the fourth quarter of 2009, or ($1.34) per fully diluted share. In response to this announcement, on the next trading day, shares of the Company stock fell approximately 15%, to close at $4.60 per share, on extremely heavy trading volume.
On May 31, 2011, Magistrate Judge Ramon E. Reyes, Jr., issued a Report and Recommendations recommending that the Plaintiffs' motion for consolidation, appointment of lead plaintiff, and appointment of counsel be granted in its entirety. On August 10, 2011, Judge Sandra L. Townes adopted the Magistrate Judge's Report and Recommendation. Waterford Township Police & Fire Retirement System and Michael L. Cox have been appointed lead plaintiffs and Robbins Geller Rudman & Dowd LLP have been appointed lead counsel. A Consolidated Amended Class Action Complaint was filed on October 17, 2011.
On March 29, 2013, the Court issued a Memorandum & Order granting the Defendants' motion to dismiss without prejudice. Plaintiffs were given leave to file an amended complaint. Plaintiffs filed their amended complaint on April 30.
On July 18, 2014, the Court issued an Order denying Defendants' Motion to Dismiss.
On September 28, 2015, this case was settled and dismissed.