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SBT.US
id: 1229

Sterling Bancorp (SBT) Investor Restitution

E.D. Michigan
Court
2:23-CR-20174
Case number
17 Nov 2017
Class period Start
17 Mar 2020
Class period End
Sterling Bancorp (SBT) is paying $27.2M in restitution to shareholders over the misleading statements related to its IPO and 2018-2019 filings.

Outline

In 2017, internal reports revealed significant flaws in Sterling's loan documentation, especially in its Advantage Loan Program. Following this disclosure, $SBT fell by 35% and faced a lawsuit from the DOJ.

Timeline
  • On December 9, 2019: Sterling Bancorp suspended the ALP and announced an investigation of the program.
  • On the same day, 2019: After the news, $SBT fell 22.86%.
  • On March 16, 2023: The government filed criminal charges against Sterling Bancorp.
  • On April 19, 2023: Sterling Bancorp agreed to pay $27.2M in restitution to shareholders.
Background

In October 2017, Sterling Bancorp went public, underlining they had a disciplined process for approving loans and a strong credit culture.

From September 2017 to March 2019, Sterling Bancorp issued loans through its Advantage Loan Program, which required minimal documentation and often skipped standard documents like tax returns and payroll records.

However, in December 2019, Sterling Bancorp publicly announced that it was suspending the ALP. This suspension was due to an internal review and investigation of the program's loan approval process.

It was disclosed that there was a lack of required documentation such as tax returns and payroll records, and fraudulent practices within the program.

On December 12, 2019, after this news, $SBT fell 35%.

Moreover, on March 16, 2023, the DOJ charged Sterling Bancorp with multiple violations including misrepresentation of the company’s loan underwriting, risk management, and internal controls, particularly regarding the ALP.

What can investors expect now?

Sterling Bancorp (SBT) is paying $27.2M in restitution to shareholders over the misleading statements related to its IPO and 2018-2019 filings.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can find out if you're eligible and get more details in the FAQ section below.
Case Status
Accepting Claims
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Defendants
Sterling Bancorp
Judge
Linda V. Parker
Administrator
A.B. Data Ltd
Trades matching type
FIFO
+$27,239,000
Cash Settlement Amount

Frequently Asked Questions