Goldman Scarlato Karon & Penny, P.C. (“Goldman Scarlato”) commenced an investigation into Suffolk Bancorp (NASDAQ: SUBK) (“Suffolk” or the “Company”) to determine whether Suffolk violated federal securities laws by misrepresenting the adequacy of its loan loss provisions between March 12, 2010 and August 10, 2011, inclusive.
On April 12, 2011, Suffolk announced that it was overhauling its lending operations after reporting a $12.9 million loss in the first quarter of 2011. Suffolk increased its loan loss provision by more than three times the amount it had set aside a year earlier. It attributed the increase in the loan provision to the “absence of recovery and increased weakness in the local economy.”
A month later, on May 11, 2011, Suffolk announced that it would not timely file its quarterly report for the first quarter of 2011 due to its identification of possible internal control weaknesses with respect to its loan loss provisions.
Finally, on August 10, 2011, the Company revealed that its Audit Committee had concluded that Suffolk’s previously issued financial statements for fiscal year 2010, the fiscal fourth quarter of 2010, and fiscal third quarter of 2010 should no longer be relied upon due to an understatement of its allowance for loan losses.
The Company’s stock dropped precipitously in connection with all of these revelations, causing shareholders to incur millions of dollars in losses.
What You May Do
If you have information that would assist Goldman Scarlato in its investigation or would like to discuss your legal rights, you may, without obligation or cost to you, e-mail or call Goldman Scarlato at
or (484) 342-0700, toll free at 888-668-4130.
Goldman Scarlato also encourages anyone with information regarding Suffolk’s conduct during the period in question to contact the Firm, including whistleblowers, former employees, shareholders, and others.
About Goldman Scarlato Karon & Penny, P.C.
Goldman Scarlato prosecutes securities fraud, consumer fraud, price-fixing, ERISA class actions, and shareholder-derivative actions throughout the U.S. The Firm’s lawyers have recovered hundreds of millions of dollars on behalf of consumers, investors, and businesses.