Kendall Law Group Plans Class Action On Behalf Of Smithtown Bancorp, Inc. Shareholders

Kendall Law Group announced today that it plans to join a lawsuit on behalf of shareholders of Smithtown Bancorp, Inc. (NASDAQ: SMTB) alleging securities violations by Smithtown and certain of its officers for failure to disclose adverse facts about the financial condition, business and prospects of the Company affecting stock purchased between March 13, 2008 and February 1, 2010.

Any shareholder who purchased SMTB stock during this time period may move the Court to serve as a plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by April 26, 2010. A lead plaintiff is a class member who acts on behalf of other class members in directing the litigation. Your ability to share in any recovery is not, affected by the decision to serve as a lead plaintiff. If you wish to learn more about your rights as a shareholder or have information concerning this action, contact attorney Hamilton Lindley at 877-744-3728 or [e-mail].

The lawsuit alleges that Defendants understated the loan loss reserves and failed to state certain assets at their true fair value, causing Smithtown’s financial results to be artificially inflated. Smithtown was able to inflate its reported income and asset quality by improperly delaying the recognition of their assets. The complaint also alleges deficient internal and disclosure controls and unsafe banking practices.

Smithtown issued a press release on February 1, 2010, announcing its fourth quarter and full year 2009 results. The Company reported a loss of $19.8 million for the first quarter of 2009. On this news, SMTB stock prices fell 15%, closing at $4.60 per share on heavy trade volume.

Kendall Law Group is a national securities firm that gives shareholders power when big businesses break the law. Led by a former federal judge and former U.S. Attorney, Kendall Law Group has the credentials to pursue any type of complex securities litigation in the nation. Shareholders who purchased ABC common stock during the relevant period may have a claim against the company and should contact attorney Hamilton Lindley for more information: