Robbins Umeda LLP Announces an Investigation of Orrstown Financial Services, Inc.
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Orrstown Financial Services, Inc. (NASDAQ: ORRF). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP’s investigation focuses on whether the directors and officers of Orrstown harmed the company and investors by issuing improper statements about the condition and future business prospects of the company. In particular, it is alleged that Orrstown misled the investing public and failed to disclose known facts about the nature of the company’s credit practices and underwriting standards, the quality of its loan portfolio, and the intended use of proceeds from its March 2010 public offering.
On October 26, 2011, Orrstown released financial results for the third quarter of 2011 that showed the company was preforming well below expectations. The company also reported that the Federal Reserve Bank of Philadelphia, one of the bank’s primary regulators, refused to authorize Orrstown’s requested declaration of quarterly dividends in an effort to prevent the company from engaging in unsafe and unsound banking practices that would further deplete its capital base. In addition, Orrstown disclosed that it had $9.4 million of charge-offs in 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 news of the financial results, shares of the company’s common stock lost nearly 30% of their value, closing on October 27, 2011, at just $9.29 per share.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.