Kehoe Law Firm, P.C. is investigating claims on behalf of investors of Equity Bancshares, Inc. (“Equity Bancshares” or the “Company”) (NasdaqGS: EQBK). The Kehoe Law Firm’s investigation concerns whether Equity Bancshares and certain of its officers and/or directors engaged in securities fraud or other unlawful business practices.
A shareholder class action complaint has been filed against Equity Bancshares on behalf of investors who purchased shares of the Company’s stock between May 11, 2018 and April 22, 2019 (the “Class Period”).
If you purchased EQBK securities during the Class Period and suffered damages, please click Join a Securities Class Action or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the class action lawsuit or Kehoe Law Firm’s securities investigation. Investors of Equity Bancshares have until July 15, 2019 to move the Court to serve as lead plaintiff.
According to the class action complaint, during the Class Period, the defendants made a series of false and misleading statements to investors, and failed to disclose that: (1) the Company lacked adequate internal controls to assess credit risk; (2) that certain of the Company’s loans posed an increased risk of loss; and (3) as a result of the foregoing, Equity Bancshares was reasonably likely to incur significant losses for certain substandard loans.
On January 24, 2019, the Company disclosed that, during fourth quarter 2018, one credit relationship was downgraded to Watch and Substandard for $19 million and $9 million, respectively. On this news, the Company’s share price fell $2.14 per share, or more than 6% in value, to close on January 24, 2019 at $32.15 per share.
On April 22, 2019, Equity Bancshares disclosed a $14.5 million provision for loss against the credit relationship, resulting in a $4.1 million net loss for first quarter 2019. On this news, the Company’s share price fell an additional $4.76 per share, or more than 16% in value, to close on April 23, 2019 at $24.71 per share.