SOURCE: Izard Nobel LLP

February 26, 2010 14:18 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Smithtown Bancorp, Inc.

WEST HARTFORD, CT--(Marketwire - February 26, 2010) -  The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of Smithtown Bancorp, Inc. ("SBI" or the "Company") (NASDAQ: SMTB) between March 13, 2008 and February 1, 2010, inclusive (the "Class Period"). 

The Complaint charges that SBI and certain of its officers and executives violated federal securities laws. Specifically, the Complaint alleges that defendants failed to disclose the following: (i) that the Company's financial results were artificially inflated due to SBI's material understatement of its loan loss reserves and SBI's failure to state certain of its assets at their true fair value; (ii) that the Company improperly delayed the recognition of its impaired assets in order to inflate its reported income and asset quality; (iii) that the Company's internal and disclosure controls were materially deficient; and (iv) that the Company, through its subsidiary, was engaged in unsafe banking practices.

On February 1, 2010, SBI announced its fourth quarter and full year 2009 results, which included a loss of $19.8 million for the fourth quarter of 2009, or ($1.34) per fully diluted share. On the next trading day, SBI stock fell approximately 15%, to close at $4.60 per share.

If you are a member of the class, you may, no later than April 26, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/smithtownbancorp/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

Contact Information