SAN DIEGO & LITTLE ROCK, Ark.–(BUSINESS WIRE)–$OZK #classaction–Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Bank OZK (NASDAQ: OZK) filed a derivative complaint against the company’s officers and directors for breaches of fiduciary duty, unjust enrichment and violations of state and federal laws beginning February 19, 2016. OZK provides retail and commercial banking services to businesses, individuals, and nonprofit and governmental entities.
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Bank OZK (OZK) Accused of Misleading Investors
According to the derivative complaint, OZK’s growth has historically been supported by its non-purchased loan portfolio, attributable to its Real Estate Specialties Group, which focused on commercial real estate and acquisition and development lending. In 2017, OZK’s officers and directors knew or recklessly disregarded that its loans related to projects in South Carolina and North Carolina (“the Loans”) were continuously underperforming and had been in continuing default. Rather than disclose the underperformance of the Loans to investors, OZK’s officers and directors masked the Loans’ underperformance by granting concessions or extending their maturity dates, thereby allowing OZK’s filings with the SEC to have materially understated its nonperforming loans and assets. Despite efforts to hide its losses, on October 18, 2018, OZK admitted that it lost $45.5 million on the Loans. On this news, OZK share price fell $10.87, almost 30%, to close at $25.52, and has yet to recover.
Bank OZK (OZK) Shareholders Have Legal Options
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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