The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Bank OZK (NASDAQGS: OZK) who purchased shares between February 19, 2016 and October 18, 2018. The action, which was filed in the United States District Court for the Eastern District of Arkansas, alleges that the Company violated federal securities laws.
(1) the Company lacked adequate internal controls to assess credit risk; (2) as a result, certain of the Company’s loans posed an increased risk of loss; (3) certain substandard loans were reasonably likely to lead to charge-offs; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. On October 18, 2018, the Company reported that it had “incurred combined charge-offs of $45.5 million on two Real Estate Specialties Group credits” that had previously been classified as substandard. On this news, the Company’s share price fell $9.33 per share to close at $25.52 per share on October 19, 2018.
Shareholders have until December 26, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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