OAKLAND, Calif.--(BUSINESS WIRE)--Sterling Bancorp, Inc. stock fell more than 22% on December 9, 2019 after the company disclosed that its subsidiary, Sterling Bank and Trust, FSB, indefinitely suspended its Advantage Loan program in connection with an internal review of the Bank's documentation and procedures. Gibbs Law Group is investigating a potential Sterling Bancorp Class Action Lawsuit on behalf of investors who lost money in Sterling Bancorp, Inc. (NASDAQ: SBT) stock.
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
In an SEC filing on December 9, 2019, Sterling Bancorp disclosed that its subsidiary, Sterling Bank and Trust, FSB, indefinitely suspended its Advantage Loan program in connection with an ongoing internal review. According to the disclosure, the review includes an audit of documentation on past loans, as well as the implementation of “additional systems and controls to ensure the Bank’s policies and procedures are followed on loans originated under the program.”
The company stated that the program will not resume until "management is confident its stated policies and procedures are being followed." The company was not able to predict how long the suspension may last.
While the effects of the suspension of the loan program cannot be fully known, Sterling Bancorp stated that it anticipates, among other things, a reduction in loan sales. If the company is unable to make up for this lost production, according to Sterling Bancorp, the loss may “materially and adversely” affect the company’s results.
Following this news, on December 9, 2019, Sterling Bancorp’s stock price dropped by more than 22%, causing significant harm to investors.
What Should Sterling Bancorp Investors Do?
If you invested in Sterling Bancorp, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Sterling Bancorp, Inc. and certain of its officers and/or directors have violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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