An investigation on behalf of investors in Green Bankshares, Inc. (NASDAQ:GRNB) over potential violations of Federal Securities Law by Green Bankshares, Inc. and others in connection with certain business, operations and prospect statements was announced.

The investigation by a law firm focuses on wether certain statements issued by Greeneville, Tennessee based Green Bankshares, Inc. between January 19, 2010 and November 9, 2010, regarding its business, operations and prospects were false and misleading and violated Federal Securities Laws. Green Bankshares Total Assets decreased from $2.944billion in 2008 to $2.619billion in 2009. Its Net Income went from a Net Income of $21.26million in 2006 to a Net Loss of $150.69million in 2009.
Shares of Green Bankshares, Inc. began trading in 2006 at $27.35 per share and increased throughout 2006 to almost $40 per share. During 2007 GRNB shares were able to hold its value until Decmber 2008 where GRNB shares fell from over $30 to $18.75 per share. During 2008 traded as high as $22.93 per share, but closed 2007 at under $15 per share. Throughout 2009 GRNB shares decreased to $3.55 on Dec 31, 2009. In 2010 GRNB shares were able to regain some value and traded in June 2010 over $14 per share. Then on October 20, 2010, Green Bankshares announced for the quarter ended September 30, 2010, net charge-offs increased on a sequential basis to $36.5 million from $4.9 million in the prior quarter. Moreover, Green Bankshares indicated that it had engaged an independent third-party loan reviewer, which contributed to the asset quality-impact reflected in its third quarter results. On this news, so the investigation, shares of Green Bankshares common stock declined $2.79 per share, more than 43%, to close on October 21, 2010, at $3.68 per share. GRNB shares fell another $1 on Wednesday Nov. 10 after Green Bankshares reported is operating results. GRNB shares closed on Friday at $2.65 per share.