NEW YORK, May 16, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Equity Bancshares, Inc. ("Equity Bancshares" or the "Company") (NASDAQ: EQBK) of the June 19, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Equity Bancshares stock or options between May 11, 2018 and April 22, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/EQBK. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Equity Bancshares securities between May 11, 2018 and April 22, 2019 (the "Class Period"). The case, Burr v. Equity Bancshares, Inc. et al, No. 19-cv-04346 was filed on May 13, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose to investors: (1) that the Company lacked adequate internal controls to assess credit risk; (2) that, as a result, certain of the Company's loans posed an increased risk of loss; (3) that, as a result, the Company was reasonably likely to incur significant losses for certain substandard loans; and (4) that, as a result of the foregoing, the Company's positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On January 24, 2019, the Company disclosed that, during fourth quarter 2018, one credit relationship was downgraded to Watch and Substandard for $19 million and $9 million, respectively. On this news, Equity Bancshares's share price fell from $34.29 per share on January 23, 2019 to a closing price of $32.15 on January 24, 2019: a $2.14 or a 6.24% drop.
On April 22, 2019, the Company disclosed a $14.5 million provision for loss against the credit relationship, resulting in a $4.1 million net loss for first quarter 2019. On this news, Equity Bancshares's share price fell from $29.47 per share on April 22, 2019 to a closing price of $24.71 on April 23, 2019: a $4.76 or a 16.15% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Equity Bancshares's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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