Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the Middle District of Pennsylvania on behalf of investors who purchased Orrstown Financial Services, Inc. (“Orrstown” or the “Company”) (Nasdaq: ORRF) stock between March 24, 2010 and October 27, 2011 (the “Class Period”) or who purchased shares pursuant to the March 24, 2010 Initial Public Offering.
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The complaint alleges that defendants made materially false and misleading statements and failed to disclose materially adverse information about the Company’s business and operations. In particular, the complaint alleges that the Company negligently prepared Offering Documents for the March 2010 Offering, and throughout the Class Period failed to disclose material information regarding the Company’s loan portfolio, underwriting practices, and internal controls.
On October 26, 2011, Orrstown released financial results for the third quarter of 2011 indicating that the company was performing well below expectations. The Company also reported that the Federal Reserve Bank of Philadelphia refused to authorize a requested declaration of quarterly dividends in an effort to prevent Orrstown from engaging in unsafe and unsound banking practices that would further deplete its capital base. Furthermore, Orrstown disclosed that it had $9.4 million of charge-offs in the third quarter of 2011, and that the company faced “decreases in asset quality ratios, including elevated levels of nonaccrual loans, restructured loans and delinquencies.” Upon this news, shares of the Company’s common stock fell nearly 30%, closing at $9.29 per share on October 27, 2011.If you suffered a loss in Orrstown you have until July 24, 2012 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. To obtain additional information, contact Joseph E. Levi, Esq. either via email at firstname.lastname@example.org or by telephone at (877) 363-5972, or visit http://zlk.9nl.com/orrstown-financial-services-orrf. Levi & Korsinsky is a national firm with offices in New York and Washington D.C. The firm has extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities and shareholder lawsuits. For more information, please feel free to contact any of the attorneys listed below. Attorney advertising. Prior results do not guarantee similar outcomes.