Court Approves $10,250,000 Settlement on Behalf of Investors in Securities Class Action

Golomb Legalrecently facilitated the settlement of a multi-million-dollar matter on behalf of thousands of investors in Pennsylvania. According to Richard Golomb, it is alleged that Sterling Financial Corporation caused its stock to be artificially inflated, harming investors who acquired these stocks, through the dissemination of false and misleading statements to the public. It is estimated that $13.5 million shares were damaged as a result of this fraud.

Starting in May of 2007, nine different securities cases were filed against Sterling Financial Corporation, including certain officers and directors who were allegedly involved in violating Section 10(b) and Section 20(a) of the Securities Exchange Act. A consolidated complaint was subsequently filed, joining PNC Financial Services Group, Inc., Equipment Financing Inc., and Bank of Lancaster County N.A. as defendants.

Although each of the defendants has denied wrongdoing, the parties agreed to settle the matter. In 2009, a $10.25 million settlement fund was created for the benefit of those who acquired stock during the period of alleged fraud (April 27, 2004 through May 24, 2007).