Investors File Securities Class Action Lawsuit Against Smithtown Bancorp, Inc. (SMTB) Over Loan Loss Reserves
A securities class action lawsuit was filed against Smithtown Bancorp, Inc. (SMTB) in the United States District Court for the Eastern District of New York on behalf of purchasers of Smithtown Bancorp, Inc. (SMTB) stock during the period between March 13, 2008 and February 1, 2010 (the Class period), for violations of the federal securities laws, according to a securities class action lawsuit filing news report.
The Smithtown Bancorp, Inc. (SMTB) securities class action lawsuit complaint reportedly alleges that defendants violated federal securities laws by failing to disclose: (i) that Smithtown Bancorp, Inc.’s financial results were artificially inflated due to Smithtown Bancorp, Inc.’s material understatement of its loan loss reserves and Smithtown Bancorp, Inc.’s failure to state certain of its assets at their true fair value; (ii) that Smithtown Bancorp, Inc. improperly delayed the recognition of its impaired assets in order to inflate its reported income and asset quality; (iii) that the Smithtown Bancorp, Inc.’s internal and disclosure controls were materially deficient; and (iv) that Smithtown Bancorp, Inc., through its subsidiary, engaged in unsafe banking practices.
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