NEW YORK, April 11, 2012 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC announces that a class action suit was filed in the United States District Court for the Eastern District of Missouri on behalf of purchasers of the common stock of Enterprise Financial Services Corp. ("Enterprise Financial" or the "Company") (Nasdaq: EFSC), between April 20, 2010 and January 25, 2012 (the "Class Period").
The Complaint alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose material adverse facts about Enterprise Financial's business, operations and prospects. Specifically, the Complaint alleges that defendants misrepresented and/or failed to disclose that: (i) the Company was improperly recording income on loans covered under loss share agreements with the Federal Deposit Insurance Corporation ("FDIC"); (ii) as a result, the Company's income was overstated; (iii) as such, the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (iv) the Company lacked adequate internal and financial controls; and (v), as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On January 25, 2012, Enterprise Financial announced that the financial statements included in its Annual Report filed with the SEC on Form 10-K for the 2010 fiscal year, and the interim financial statements included in its Quarterly Reports filed with the SEC on Form 10-Q for the first three fiscal quarters of 2010 and 2011, respectively, should no longer be relied upon. According to the Company, during these periods an error in the process Enterprise Financial used to record income on loans covered under loss share agreements with the FDIC resulted in the overstatement of the Company's reported income. On this news, shares of Enterprise Financial declined $2.92 per share, nearly 19%, to close on January 26, 2012, at $12.55 per share, on unusually heavy volume.
If you are aware of any facts relating to this investigation, or purchased shares of Enterprise Financial, you can assist this investigation by contacting either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.