Golomb & Honik, P.C. recently facilitated the settlement of a multi-million-dollar
matter on behalf of thousands of investors in Pennsylvania. According
to Richard Golomb, it is alleged that Sterling Financial Corporation caused
its stock to be artificially inflated, harming investors who acquired
these stocks, through the dissemination of false and misleading statements
to the public. It is estimated that $13.5 million shares were damaged
as a result of this fraud.
Starting in May of 2007, nine different securities cases were filed against
Sterling Financial Corporation, including certain officers and directors
who were allegedly involved in violating Section 10(b) and Section 20(a)
of the Securities Exchange Act. A consolidated complaint was subsequently
filed, joining PNC Financial Services Group, Inc., Equipment Financing
Inc., and Bank of Lancaster County N.A. as defendants.
Although each of the defendants has denied wrongdoing, the parties agreed
to settle the matter. In 2009, a $10.25 million settlement fund was created
for the benefit of those who acquired stock during the period of alleged
fraud (April 27, 2004 through May 24, 2007).