NEW YORK, June 12, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Orrstown Financial Services, Inc. ("Orrstown" or the "Company") (NASDAQ: ORRF).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that Orrstown negligently prepared Offering Documents for the Company's March 2010 offering, and subsequently failed to disclose material information regarding the Company's loan portfolio, underwriting practices and internal controls.
On October 26, 2011, Orrstown released financial results for the third quarter of 2011 indicating that the Company was performing far below expectations. The Company also reported that the Federal Reserve Bank of Philadelphia had refused to authorize a requested declaration of quarterly dividends in an effort to prevent Orrstown from engaging in unsafe and unsound banking practices that would further deplete the Company's dwindling capital base. Furthermore, Orrstown disclosed that it had $9.4 million in charge-offs for the third quarter of 2011, and that the Company faced "decreases in asset quality ratios, including elevated levels of nonaccrual loans, restructured loans and delinquencies." Upon this news, shares of the Company's common stock fell by nearly 30%, closing at $9.29 per share on October 27, 2011.
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If you purchased Orrstown securities between March 24, 2010 and October 27, 2011 and would like to discuss your legal rights, visit www.faruqilaw.com/ORRF. You can also contact us by calling Juan Monteverde, Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected], [email protected] or [email protected]. Faruqi & Faruqi, LLP also encourages anyone with information regarding Deckers' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Juan Monteverde, Esq.
Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP