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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of November 20, 2012 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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Lawsuit Overview
Settlement Overview
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July 9, 2012 (Update) -- BancorpSouth Inc. agreed to pay $29,250,000 to resolve a shareholder class action that alleged the company artificially inflated its stock price. Court fairness hearing set for October 31, 2009.
January 2012 (Update) -- A motion to dismiss was denied.
May 12, 2010 -- An investor in BXS stock filed a lawsuit in the United States District Court for the Middle District of Tennessee on behalf of purchasers of BancorpSouth, Inc. (NYSE:BXS) common stock during the period between July 23, 2009 and February 25, against BancorpSouth, Inc. and others alleging violations of Federal Securities Laws.
BancorpSouth, Inc., incorporated in 1982 and locaed in Tupelo, MS, is a financial holding company for its principal subsidiary, BancorpSouth Bank (the Bank). The Company conducts commercial banking and financial services operations through 313 offices in Mississippi, Tennessee, Alabama, Arkansas, Texas, Louisiana, Florida and Missouri.
According to the complaint the plaintiff alleges that BancorpSouth, Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between July 23, 2009 and February 25, 2010, materially false and misleading statements regarding its business and financial results and engaged in improper behavior that harmed BancorpSouth’s investors by failing to disclose the extent of seriously delinquent commercial real estate loans and construction and land loans. The plaintiff also accuses that BancorpSouth, Inc also failed to adequately and timely record losses for its impaired loans, causing its financial statements to be materially false and as a result of defendants’ false statements,
BancorpSouth’s stock (BXS) traded at artificially inflated prices between July 23, 2009 and February 25, 2010, reaching a high of $25.13 per share on October 14, 2009.
Then on February 25, 2010, after the market closed, BancorpSouth announced that it would be postponing the filing of its Form 10-K with the SEC for the year ended December 31, 2009, in order to further review its allowance for credit losses and their impact on the Company’s results. BancorpSouth further reported that based on its review, it expected to adjust its previously reported financial results for the quarter and year ended December 31, 2009 to decrease net income.
On this news, BancorpSouth’s stock (BXS) fell $3.10 per share to close at $19.47 per share on February 26, 2010, a one-day decline of over 13% on high volume, and a decline of 23% from the stock’s high between July 23, 2009 and February 25, 2010.
Shares of BancorpSouth, Inc. (NYSE:BXS) traded recently at 19.32 per share, down from its 52weekHigh of $25.319 per share. BXS shares reached in 2008 almost $30 per share.