Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Bank OZK (the Company) (NASDAQ:OZK) of the December 26, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Bank OZK stock or options between February 19, 2016 and October 18, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/OZK. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
The lawsuit has been filed in the U.S. District Court for the Eastern District of Arkansas on behalf of all those who purchased Bank OZK securities between February 19, 2016 and October 18, 2018 (the Class Period). The case, Colbert v. Bank OZK et al., No. 18-cv-00793 was filed on October 26, 2018, and has been assigned to Judge James Maxwell Moody, Jr.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose (1): that the Company lacked adequate internal controls to assess credit risk; (2) that, as a result, certain of the Company’s loans posed an increased risk of loss; (3) that certain substandard loans were reasonably likely to lead to charge-offs; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Specifically, on October 18, 2018, the Company issued a press release to announce its third quarter 2018 financial results, which revealed that the Companys net income for the quarter was 22.7% below the same quarter of 2017. The release also exposed that the Company had incurred combined charge-offs of $45.5 million on two Real Estate Specialties Group credits in South Carolina and North Carolina. The following day, on October 19, 2018, the Company held a conference call with analysts and investors in which Chief Executive Officer (CEO) George Gleason stated that one credit became substandard in the second quarter of 2017 and the other in the fourth quarter of 2017.
On this news, the Companys stock price fell from $34.85 on October 18, 2018 to $25.52 on October 19, 2018a $9.33 or 26.77% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Bank OZKs conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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