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Smithtown Bancorp, Inc. SBI Securities Stock Fraud

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Company: Smithtown Bancorp, Inc.
Ticker Symbol: SBI
Class Period: Mar-13-08 to Feb-1-10
Date Filed: Feb-26-10
Lead Plaintiff Deadline: Apr-27-10
Court: Eastern District of New York
Allegations:
A lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of Smithtown Bancorp, Inc. ("SBI" or the "Company") between March 13, 2008 and February 1, 2010, inclusive (the "Class Period").

The Complaint charges that SBI and certain of its officers and executives violated federal securities laws. Specifically, the Complaint alleges that defendants failed to disclose the following: (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 banking practices.

On February 1, 2010, SBI announced 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. On the next trading day, SBI stock fell approximately 15%, to close at $4.60 per share.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

Smithtown Bancorp, Inc. SBI Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible Smithtown Bancorp, Inc. securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.

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