SOURCE: Izard Nobel LLP

December 11, 2009 17:40 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Sterling Financial Corporation

WEST HARTFORD, CT--(Marketwire - December 11, 2009) - 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 Washington on behalf of those who purchased the common stock of Sterling Financial Corporation ("Sterling" or the "Company") (NASDAQ: STSA) between July 23, 2008 and January 13, 2009, inclusive (the "Class Period").

The Complaint charges that defendants violated federal securities laws by failing to disclose the extent of seriously delinquent commercial real estate loans, construction and land loans. Sterling also failed to adequately and timely record losses for its impaired loans, causing its financial results and its Tier 1 capital ratio to be materially false. As a result, Sterling traded at artificially inflated prices, reaching a Class Period high of $14.72 per share on October 1, 2008.

On January 13, 2009, Sterling announced that it anticipated reporting a loss for both the fourth quarter and year ended December 31, 2008. The loss would be due in substantial part to an anticipated increase in its allowance for loan and lease loss reserves of approximately $230 million and an expected goodwill impairment charge of between $275 million to $325 million. Sterling further announced that it would be suspending its quarterly cash dividend. On this news, Sterling's stock dropped $3.05 per share to close at $3.40 per share on January 14, 2009.

If you are a member of the class, you may, no later than February 9, 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:, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: For more information about class action cases in general, please visit our website:

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