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AROW.US
id: 774

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
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
Tentative Settlement
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Service Provider
Security Type
Stocks
Trade Direction
Long
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
Trades matching type
FIFO
+$850,000
Cash Settlement Amount

Frequently Asked Questions

Arrow Financial Corporation

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company's deposit products include demand deposits, interest-...

    Ticker
    AROW.US
    ISIN
    US0427441029
    CIK
    717538
    Sector
    Financial Services
    Industry
    Banks - Regional
    Country
    USA
    Address
    250 Glen Street, Glens Falls, NY, United States, 12801