Philadelphia, PA, November 30, 2009 – Philadelphia law firm, Golomb & Honik, P.C., as co-counsel, facilitated settlement of a multimillion dollar matter on behalf of thousands of investors who were injured as a result of Sterling Financial Corporation’s alleged violations of federal law.
According to Richard M. Golomb, Esquire, it is alleged that for three years the Sterling Financial Corporation disseminated false and misleading statements to the public causing its stock to be artificially inflated and harming investors who acquired the stock at these inflated prices. Lead counsel for the plaintiffs, Arkansas firm, Carney Williams Bates Bozeman & Pulliam, PLLC, estimated that $13.5 million shares were damaged as a result of fraud.
Beginning in May 2007, nine securities cases were filed against Sterling and certain officers and directors alleging violations of Section 10(b) and Section 20(a) of the Securities Exchange Act. Plaintiffs’ counsel subsequently filed a consolidated amended complaint joining defendants PNC Financial Services Group, Inc., Bank of Lancaster County N.A., and Equipment Financing Inc.
In April of 2008, PNC merged with Sterling, Bank of Lancaster and EFI.
Although defendants in this case dispute plaintiffs’ allegations and deny any wrongdoing, the parties agreed to settle the matter. In the summer of 2009, the United States District Court for the Eastern District of Pennsylvania in In Re Sterling Financial Corporation Securities Class Action, created a $10.25 million settlement fund for the benefit of those investors who acquired stock in April 27, 2004 through May 24, 2007.
The court further granted the requested attorneys’ fees in this case.
