Arrow Financial (AROW) Investor Settlement

N.D. New York

Court

1:23-CV-00764

Case number

06 Aug 2022

Class period Start

12 May 2023

Class period End

17 Jan 2025

Claim deadline

Arrow Financial reached an agreement with $AROW investors to settle claims about the financial reporting issues and the risk of NASDAQ delisting.

Case Details:

On May 11, 2023, Arrow Financial Corporation (AROW) disclosed that it could not timely file its quarterly report “because the Company continued to require additional time to complete management’s assessment of the effectiveness of internal controls over financial reporting as of December 31, 2022”

On this news, $AROW fell 1.66%.

Then, on May 15, 2023, Arrow disclosed that it received a second notice of non-compliance with the NASDAQ’s periodic filing requirements because of the Company’s failure to timely file the 1Q23 10-Q with the SEC. 

Arrow also disclosed that the Company’s “President and Chief Executive Officer and a member of the Board of Directors of Arrow terminated his employment as President and CEO and as a director of the Company and from all other positions he holds with the Company.” 

On this news, $AROW fell 2.71%.

Based on these events, Arrow and its leaders were accused of hiding or misleading about the following details:
Arrow had defective disclosure controls and procedures, posing a risk of delayed financial report filings.
This increased the chance of NASDAQ delisting for Arrow.
After disclosing these issues, Arrow downplayed their severity and associated risks.
Arrow Financial reached an agreement with $AROW investors to settle claims about the financial reporting issues and the risk of NASDAQ delisting.

Case Status

Preliminary Approved Settlement

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management,

Service Provider

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.35

Filing date

23 June 2023

Lead Plaintiff Deadline

22 August 2023

Plaintiffs

Robert C. Ashe

Attorneys

Pomerantz LLP (New York, NY)

Defendants

Thomas J. Murphy, Penko K. Ivanov, Edward J. Campanella,

Judge

Hon. Anne M. Nardacci

Administrator

Strategic Claims Services

Settlement agreement date

2024-06-07

Court hearing date

10 January 2025

Exclusion deadline

20 December 2024

Objection deadline

20 December 2024

Trades matching type

FIFO

+$850,000

Cash Settlement Amount