According to the press release dated October 20, 2011, the complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that the Company’s financial results were artificially inflated due to the material understatement of Suffolk’s loan loss reserves; (ii) that the Company’s financial results were artificially inflated due to a failure to recognize its impaired assets; (iii) that the Company’s internal and disclosure controls were materially deficient; and (iv) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth.
On August 10, 2011, the Company issued a press release announcing its inability to file its quarterly results with the SEC on Form 10-Q and reporting its expected results for the quarter ended June 30, 2011. In addition, on that date, the Audit Committee of the Company’s Board of Directors concluded that Suffolk’s previously issued financial statements as of and for the year ended December 31, 2010, the quarter ended December 31, 2010 and the quarter ended September 30, 2010, as reported in Suffolk’s Annual Report on Form 10-K and Quarterly Report on Form 10-Q, respectively, “should no longer be relied upon due to an understatement of its allowance for loan losses in such periods.” As a result of these disclosures, the price of Suffolk stock declined more than 11.3%, closing at $9.16 per share on August 10, 2011.
On May 1, 2012, plaintiffs filed an amended class action complaint.
On April 10, 2013, the parties filed a Settlement Agreement. The Court preliminarily approved the Settlement on July 18. On November 13th, the Court issued an Order awarding attorneys' fees and expenses. On the same date, the Court also issued a Final Judgment approving the Settlement and ordered this case dismissed with prejudice.