A law firm recently noted that it filed a securities class action lawsuit against a financial holding company due to potential federal securities law violations.
Pomerantz, LLP, announced that the litigation was filed in the U.S. District Court for the Nashville Division of the Middle District of Tennessee against BancorpSouth, Inc. This includes all shareholders who acquired interests in the company during the class period between Jan. 8, 2014 and July 21, 2014.
The allegations in the case center around the company's board of directors' potential violation the Securities Exchange Act of 1934. This was due to a number of statements made by company leaders that may have been either false or misleading about business practices and performance. There also may have been some information that was omitted from these statements, hurting shareholders in the process.
It is a possibility for shareholders to take up the lead plaintiff position in the case, but they will need to file the necessary applications with the court by Sept. 29, 2014. This is not a mandatory action, and shareholders will need to be approved by the court as adequate class representatives. For those who are not interested in the position, it is still possible to take no action at this time, remain an absent member of the class and collect in the event of a financial award.
For any shareholders who have questions about the lead plaintiff position, the case itself and how it may affect them, speaking with the law office is an option. The best person to get in touch with is Robert Willoughby, and he can be reached by telephone or email. Those shareholders who make contact by email need to leave their telephone number, mailing address and the number of BancorpSouth shares they own. Further information is available on the law office's website.
Separate investigation commences
Another law office explained that it started looking into claims from shareholders about potential federal securities violations. This also could become a class action lawsuit at a later date.
Robbins Arroyo, LLP, noted that it was investigating the potential that BancorpSouth's leaders breached fiduciary duties to its shareholders by not ensuring that its internal policies were compliant with federal law.
This law office also has individuals available to speak on these matters. Darnell Donahue is the best person to contact, and he can be reached by email or telephone.