BankcorpSouth Class Action
For those who purchased stock in BankcorpSouth, Inc, there is a current class action lawsuit against the company for securities fraud. Investors who bought stock between July 23, 2009 and February 25, 2010 are eligible to participate in the class action against BankcorpSouth (NYSE: BXS). The financial holding company is charged with violating the Securities Exchange Act of 1934.
Among other things cited the BankcorpSouth class action, the defendants failed to mention to its investors that there were problems with its loans in the areas of construction and commercial real estate. Financial reports did not follow Generally Accepted Accounting Principles, or GAPP, which maintains rules and standards so that financial statements can be analyzed objectively and clearly. Bankcorp also failed to reveal to investors its inadequate internal controls.
Bankcorp since suffered from credit losses, which altered the financial outlook of the company. The alleged false and misleading statements, along with improper behavior which harmed investors in Bankcorp, lead to the current class action against the financial holding company. They basically allegedly hid the very delinquent real estate, construction and land loans.
Bankcorp announed on February 25, 2010 that it would be altering its estimated net income for the previous year and quarter ending December 31, 2009. As a result, Bankcorp stock fell $3.10 the next day. This was more than a 13% drop in one day on high volume.
