AROW Investors Have Opportunity to Lead Arrow Financial Corporation Securities Fraud Lawsuit

LOS ANGELES, July 24, 2023 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Arrow Financial Corporation ("Arrow" or the "Company") (NASDAQ: AROW).

Class Period: March 12, 2022 – May 12, 2023
Lead Plaintiff Deadline: August 22, 2023

On March 16, 2023, Arrow disclosed that it would be unable to file its 2022 annual report on time because the Company needed "additional time to complete the assessment of the effectiveness of internal controls over financial reporting." On this news, Arrow's stock price fell $0.99, or 3.6%, to close at $26.21 per share on March 17, 2023, thereby injuring investors.

On May 11, 2023, the Company announced that it would not be able to file its first quarter 2023 report on time "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, Arrow's stock price fell $0.33, or 1.7%, to close at $19.59 per share on May 12, 2023.

Then, on April 5, 2023, Arrow disclosed that it had received a notice of non-compliance with the NASDAQ periodic filing requirements due to the Company's failure to timely file its 2022 report. On May 15, 2023, Arrow announced that it had received a second notice of non-compliance due to its failure to time file its first quarter 2023 report. The Company also disclosed that its "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 and its affiliates, effective May 12, 2023." On this news, Arrow's stock price fell $0.53, or 2.7%, to close at $19.06 per share on May 15, 2023, thereby injuring investors further.

The complaint filed alleges that, throughout the Class Period, Defendants failed to disclose to investors that: (1) Arrow maintained defective disclosure controls and procedures and internal controls over financial reporting; (2) the foregoing increased the risk that the Company could not timely file one or more of its periodic financial reports with the SEC as required by the NASDAQ's listing requirements; (3) accordingly, Arrow was at an increased risk of being delisted from the NASDAQ; (4) following the disclosure of deficiencies in the Company's disclosure controls and procedures and internal controls over financial reporting, Arrow downplayed the severity of these issues and the associated risks; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.  If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

SOURCE The Law Offices of Frank R. Cruz, Los Angeles