Company: Equity Bancshares, Inc.
Class Period: May 11, 2018 — April 22, 2019
Court: U.S.D.C. – Southern District of New York
A shareholder class action complaint has been filed against Equity Bancshares, Inc. (“Equity Bancshares”) on behalf of investors who purchased shares of the Company’s stock between May 11, 2018 and April 22, 2019 (the “Class Period”).
Equity Bancshares purports to provide a broad range of financial services through its wholly-owned subsidiary Equity Bank with branches in Arkansas, Kansas, Missouri, and Oklahoma.
According to the complaint, during the Class Period the defendants made a series of false and misleading statements to investors, and failed to disclose that: (1) the Company lacked adequate internal controls to assess credit risk; (2) that certain of the Company’s loans posed an increased risk of loss; and (3) as a result of the foregoing, the Company was reasonably likely to incur significant losses for certain substandard loans.
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, the Company’s share price fell $2.14 per share, or more than 6% in value, to close on January 24, 2019 at $32.15 per share.
Then, 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, the Company’s share price fell an additional $4.76 per share, or more than 16% in value, to close on April 23, 2019 at $24.71 per share.
Stockholders who purchased the Company’s shares prior to May 11, 2018 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740, or by completing the form on this page, to receive additional information about this action and their legal rights and options.