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Officers and Directors of Sterling Bancorp, Inc. (SBT) Under Investigation for Allegedly Misleading Statements Regarding the Advantage Loan Program

By on March 9, 2021 0

SAN FRANCISCO, 23 april 2020 / PRNewswire / – Schubert Jonckheer & Kolbe LLP is investigating potential derivative shareholder claims on behalf of shareholders of Sterling Bancorp, Inc. (NASDAQ: SBT) related to the company’s statements regarding its Advantage loan program – formerly the La Line largest and most profitable labor company.

According to Sterling’s 2018 Form 10-K, the Advantage Loan Program was a product consisting of “one, three, five or seven year variable rate mortgages” offered to “underserved homebuyers who have good credit. credit, but who may have a limited credit history. . ” From December 31, 2018, the Advantage loan program represented 80% of Sterling’s residential loan portfolio.

At December 9, 2019Sterling has revealed that it is suspending its Advantage loan program “as part of an ongoing internal review of the program’s documentation procedures.” This announcement followed a June 21, 2019 disclosure that the company had entered into an agreement with the Office of the Comptroller of the Currency to strengthen its compliance with the Anti-Money Laundering and Bank Secrecy Act. In response to the company’s announcement of December 9, 2019, the pound sterling’s share price fell 23% due to heavy trading, erasing $ 100 million of market capitalization in a single day. The stock has been falling steadily since.

At March 6, 2020, Sterling has announced that it will not resume its Advantage loan program, revealing that preliminary results of its internal review “indicate that some employees have engaged in misconduct relating to the granting of such loans, including with respect to relates to verification and income requirements, the use of third parties and related documentation. ”Due to these issues, Sterling has not yet filed its Form 10-K 2019 and is currently not in compliance with the requirements of Nasdaq listing.

A pending securities class action lawsuit against the company in the US District Court for the Eastern District of Michigan alleges that Sterling officers and directors misled investors between November 17, 2017, the date of the company’s initial public offering, and December 8, 2019 about Sterling’s loan underwriting, risk management and internal controls relating to its Advantage loan program.

Schubert is investigating possible derivative claims based on the prejudice suffered by the company as a result of potential breaches of fiduciary duty on the part of the officers and directors of the company related to their statements regarding the Advantage loan program. For more information, please visit our website at http://www.classactionlawyers.com/sterling

If you currently own stock in pounds sterling and would like further information on shareholder claims and your legal rights, please Contact us today.

About Schubert Jonckheer & Kolbe LLP
Schubert Jonckheer and Kolbe represents shareholders, employees and consumers in class actions against corporate defendants, as well as shareholders in derivative actions against their officers and directors. The firm is based in San Francisco, and with the help of a co-counsel, advocates business across the country. Lawyer advertising. Past results do not guarantee similar results.

Contact
Dustin L. Schubert
Schubert Jonckheer and Kolbe
[email protected]
Phone: 415-788-4220

SOURCE Schubert Jonckheer & Kolbe LLP

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