MINNEAPOLIS, June 13, 2007 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that class actions have been commenced in the United States District Courts for the Southern District of New York and the Eastern District of Pennsylvania on behalf of purchasers of Sterling Financial Corporation ("Sterling" or the "Company") (Nasdaq:SLFI) publicly traded securities during the period April 27, 2004 through May 25, 2007 (the "Class Period).
If you are a member of the proposed Class, you may move the court to serve as a lead plaintiff for the Class on or before July 24, 2007. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges certain present and former officers, employees, and directors of Sterling's wholly owned subsidiaries Equipment Finance LLC ("EFI") violated Federal Securities laws by engaging in a scheme to artificially inflate the price of Sterling stock. On April 30, 2007, Sterling announced that based on an internal investigation related to EFI, it expected to restate financial statements for 2004 through 2006, and that all of Sterling's financial statements and earnings releases issued during that period should no longer be relied upon.
After the market closed on May 24, 2007, Sterling announced preliminary results from its ongoing investigation. According to the Complaint, the investigation revealed evidence of a sophisticated loan scheme, orchestrated deliberately by certain EFI officers and employees over an extended period of time to conceal credit delinquencies, falsify financial contracts and related documents, and subvert established internal controls established. As a result, the Company announced it terminated 5 employees at EFI and expected to take a cumulative after-tax charge of $145 million to $160 million to the Company's 2006 results. On this news, Sterling common stock, which closed at $16.16 per share on May 24, fell $6.10 to close at $9.97 per share on May 25. During the Class Period, Sterling common stock traded as high as $30.39 per share.
If you purchased Sterling Financial Corporation securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com)
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
(651) 633-5685