Suffolk Bancorp Hit By Investor Securities Class Action Lawsuit
San Diego, Oct. 21, 2011 (Shareholders Foundation) -- An investor in Suffolk Bancorp (NASDAQ: SUBK) shares filed a lawsuit in U.S. District Court for the Eastern District of New York against Suffolk Bancorp over alleged Violations of Federal Securities Laws.
According to the complaint the plaintiff alleges on behalf of purchasers of the common stock of Suffolk Bancorp (Nasdaq:SUBK) between March 12, 2010 and August 10, 2011, that Suffolk Bancorp and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements regarding its business and prospects.
Suffolk Bancorp’s Net Income decreased from $22.13million in 2007 to $15.02million in 2010. Its first quarter Net Income fell from a first quarter Net Income of $1.53million last year to a first quarter Net Loss of $12.90million for the first quarter in 2011.
On August 10, 2011, Suffolk Bancorp had announced 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.”
The plaintiff alleges that 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. In fact, shares of Suffolk Bancorp (Public, NASDAQ:SUBK) fell from as high as over $40 per share during 2008 and over $30 per share in April 2010 to as low as $7.62 per share on September 6, 2011.


