BancorpSouth Investor Action Over Stock Inflation Survives
By Roxanne Palmer
Law360, New York (January 24, 2012, 5:29 PM ET) -- A Tennessee federal judge on Tuesday refused to toss a shareholder's putative class action against BancorpSouth Inc. claiming the company and its executives hid details about its hemorrhaging loan portfolio with false financial statements that artificially inflated its stock price.
U.S. District Judge Kevin H. Sharp agreed with a magistrate judge's assessment that plaintiff Edward Winslow had pleaded enough facts to counter BancorpSouth's motion to dismiss the case.
The factual allegations in the complaint, if true, “allow the court to draw the necessary inference that defendants...