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COMPLAINT
Against STERLING FINANCIAL CORPORATION (SLFI) Subsidiaries EQUIPMENT FINANCE, LLC and BANK OF LANCASTER, N.A.
Notice of Class Action Files Against STERLING FINANCIAL CORPORATION (SLFI) SUBSIDIARIES Brought By Kantrowitz, Goldhamer & Graifman, P.C.
(BUSINESS WIRE) June 12, 2007 -- Notice is hereby given that a lawsuit has been filed in the U.S. District Court for the Southern District of New York by the law firm of Kantrowitz, Goldhamer & Graifman, P.C. of Chestnut Ridge, New York on behalf of the plaintiff and a proposed class of purchasers of securities of STERLING FINANCIAL CORPORATION (NASDAQ: SLFI) ("Sterling" or "Company") against subsidiaries of Sterling, Equipment Finance, LLC ("EFI") and Bank of Lancaster, N.A. and certain officers and directors for the class period April 27, 2004 through May 24, 2007 ("Class Period").
The Complaint alleges that the Bank of Lancaster, its subsidiary, EFI, and certain officers and directors of Sterling and/or EFI violated Sections 10(b) and/or 20(a) of the Securities Exchange Act of 1934 by engaging in a fraudulent scheme to artificially inflate the price of Sterling securities during the Class Period and thereby defrauding persons who purchased Sterling securities during the Class Period. Among the alleged actions of the complaint are that Defendants knowingly employed devices, schemes and artifices to defraud plaintiff and the Class by knowingly or recklessly providing materially false and misleading financial information regarding the subsidiary, EFI. As a result of the scheme to defraud, Sterling was forced to announce that its previously issued financial statements for fiscal years ("FY") ended 2004 through 2006, and interim periods therein, could no longer be relied upon. Sterling announced on May 24, 2007 that irregularities were present in certain financing contracts which EFI had entered into and that certain of EFI's officers and directors had subverted internal controls, concealed credit delinquencies and falsified financial contracts and related documents. In addition, Sterling announced that it had preliminarily determined that it would record an after tax charge to its FY 2006 of approximately $145 million to $165 million. The impact on Sterling's stock was significant, damaging plaintiff and members of the Class.
Plaintiff seeks to recover damages on its own behalf and on behalf of the Class and is represented by the law firm of Kantrowitz, Goldhamer & Graifman and its co-counsel, Stull Stull & Brody. The firms have significant experience successfully prosecuting complex securities fraud class actions on behalf of defrauded investors.
If you engaged in transactions of Sterling securities during the Class Period, you may, not later than July 24, 2007 move the court to be appointed as lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact: Gary S. Graifman, Esq., at Kantrowitz, Goldhamer & Graifman, P.C., toll-free at 800-660-7843 or via email at ggraifman@kgglaw.com or by writing to:
Kantrowitz, Goldhamer & Graifman, P.C.
747 Chestnut Ridge Road,
Chestnut Ridge, New York 10977.
