According to the law firm press release, the Complaint charges Enterprise and certain of the Company’s executive officers with violations of federal securities laws. Enterprise operates as the holding company for Enterprise Bank & Trust, which purports to provide banking and wealth management services to individuals and business customers in the St. Louis, Kansas City and Phoenix metropolitan markets. The Complaint alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose material adverse facts about Enterprise's business, operations and prospects. Specifically, the Complaint alleges that defendants misrepresented and/or failed to disclose that: (1) the Company was improperly recording income on loans covered under loss share agreements with the Federal Deposit Insurance Corporation ("FDIC"); (2) as a result, the Company's income was overstated; (3) as such, the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (4) the Company lacked adequate internal and financial controls; and (5), as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On January 25, 2012, the Company announced that the financial statements included in its Annual Report filed with the SEC on Form 10-K for the 2010 fiscal year, and the interim financial statements included in its Quarterly Reports filed with
the SEC on Form 10-Q for the first three fiscal quarters of 2010 and 2011, respectively, should no longer be relied upon. According to the Company, during these periods an error in the process Enterprise used to record income on loans covered under loss share agreements with the FDIC resulted in the overstatement of the Company's reported income.
As a result of this news, shares of Enterprise declined $2.92 per share, nearly 19%, to close on January 26, 2012, at $12.55 per share, on unusually heavy volume.
On July 10, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel.
On October 10, 2012, the Plaintiffs filed an amended complaint.
On May 29, 2013, the Court issued an Order granting the Defendants' motion to dismiss with prejudice.