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ORRF.US
id: 498

Orrstown Financial Services (ORRF) Securities $15M Settlement

It is still possible to file a late claim. The court will decide whether to accept late claims or not.
M.D. Pennsylvania
Court
12-CV-00993
Case number
15 Mar 2010
Class period Start
26 Apr 2012
Class period End
22 Jun 2023
Claim deadline
Orrstown Financial Services (ORRF) agreed to pay up to $15 million to settle a securities class action lawsuit to avoid further litigation.

As per the law firm's press release, the Defendants were facing legal action for violating the Securities Act of 1933 and the Securities and Exchange Act of 1934. The Complaint alleged that the Offering Documents for the March 2010 Offering were negligently prepared and failed to disclose crucial information about Orrstown's loan portfolio, underwriting practices, and internal controls. It further stated that despite this, Orrstown continued to make false and misleading statements about the quality of its loan portfolio, internal controls, and lending practices to the investing public after the March 2010 Offering.

On October 27, 2011, Orrstown announced that the Federal Reserve Bank of Philadelphia had refused to authorize the Bank's declaration of quarterly dividends, citing unsafe and unsound banking practices that could further deplete the Bank's capital base.

The Company also reported charge-offs of $9.4 million for that quarter alone and noted "decreases in asset quality ratios, including elevated levels of nonaccrual loans, restructured loans, and delinquencies." The disclosures made in July and October 2011 showed that Orrstown's prior representations were false and misleading as its loan portfolio was severely impaired, and its underwriting and management lead loan approval process was inadequate, resulting in the outsourcing of its loan review process to an independent party.

These revelations led to a correction in Orrstown's valuation, causing the stock price to plummet, indicating that Defendants' false assurances had caused Orrstown to trade at artificially high prices throughout the Class Period.
Case Status
Accepting Late Claims
Alleged Offence
Other
Suspected Party
Other
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Filing date
25 May 2012
Plaintiffs
Southeastern Pennsylvania Transportation Authority
Attorneys
Chimicles Schwartz Kriner & Donaldson-Smith LLP (Haverford, PA)
Defendants
ANTHONY F. CEDDIA, JEFFREY W. COY, MARK K. KELLER, ANDREA PUGH, THOMAS R. QUINN, JR., GREGORY A. ROSENBERRY, KENNETH R. SHOEMAKER, GLENN W. SNOKE, JOHN S. WARD, BRADLEY S. EVERLY, JOEL R. ZULLINGER, JEFFREY W. EMBLY,
Judge
Hon. Sylvia H. Rambo
Administrator
Kroll
Court hearing date
19 May 2023
Exclusion deadline
28 April 2023
Objection deadline
28 April 2023
Trades matching type
FIFO
+$15,000,000
Cash Settlement Amount

Orrstown Financial Services Inc

Orrstown Financial Services, Inc. operates as the financial holding company for Orrstown Bank that provides commercial banking and financial advisory services to retail, commercial, non-profit, and...

    Ticker
    ORRF.US
    ISIN
    US6873801053
    CIK
    826154
    Sector
    Financial Services
    Industry
    Banks - Regional
    Country
    USA
    Address
    77 East King Street, Shippensburg, PA, United States, 17257