In May 2012, Southeastern Pennsylvania Transportation Authority (“SEPTA”) commenced this federal securities action against Orrstown Bank, its holding company Orrstown Financial Services Inc. (collectively “Orrstown”) and certain Orrstown officers and directors asserting claims under the Securities Exchange Act and the Securities Act for the making of false and misleading statements in Orrstown’s Registration Statement and Prospectus in connection with its March 2010 secondary stock offering and in financials and reports filed with the Securities and Exchange Commission (“SEC”) from March 15, 2010 through April 5, 2012 (the “Class Period”). The action also named as defendants Sandler O’Neill and Partners, L.P. and Janney Montgomery Scott LLC, the underwriters for the March 2012 common stock offering, and Orrstown’s auditor, Smith Elliott Kearns & Company. In June 2015, the Court granted defendants’ motions to dismiss but gave SEPTA the opportunity to file a motion for leave to amend its complaint. On July 22, 2015, SEPTA filed the motion and its proposed Second Amended Complaint. On February 8, 2016, the Court granted SEPTA’s motion and ordered that the Second Amended Complaint be deemed filed as of February 8, 2016. Thereafter, the Defendants filed motions to dismiss the Second Amended Complaint, and briefing on the motions was completed on May 20, 2016. On December 7, 2016, the Court issued a 54-page opinion and order that permits SEPTA’s Securities Exchange Act claims to proceed with respect to financial reports and SEC filings made in 2010 through April 5, 2012. On behalf of the proposed class of Orrstown investors, the Exchange Act claims will proceed as against Orrstown Bank, Orrstown Financial Services Inc., and individual Defendants Quinn, Embly and Everly. The Court’s order and opinion and are available below.
If you are interested in discussing your rights as an Orrstown shareholder and/or have information relating to the matter, please contact the attorneys listed below.