LOS ANGELES, Dec. 23, 2010 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased or otherwise acquired the securities of Green Bankshares, Inc. ("Green Bankshares" or the "Company") (Nasdaq:GRNB) between January 19, 2010, and November 9, 2010, inclusive (the "Class Period"), have 26 days until the January 18, 2011, deadline to move the Court to serve as Lead Plaintiff in the securities fraud class action lawsuit. The case filed by Glancy Binkow & Goldberg LLP, Burgraff v. Green Bankshares, Inc.,et al., No. 10-cv-0253, has been assigned to the Honorable Curtis L. Collier, United States District Judge for the Eastern District of Tennessee.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201‑9150 or Toll Free at (888) 773‑9224, by email to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
The Complaint charges the Company and certain of its executive officers with violations of federal securities laws. Green Bankshares operates as the bank holding company for GreenBank, which provides commercial banking services primarily in Tennessee. GreenBank offers a range of deposit products and it also provides a portfolio of loan products, including commercial real estate loans; residential real estate loans, such as one-to-four family, owner-occupied residential mortgage loans; commercial loans for various business purposes, including working capital, inventory and equipment, and capital expansion; and consumer loans for personal, family, or household purposes. The Complaint alleges that defendants knew or recklessly disregarded that their public statements concerning Green Bankshares' business, operations and prospects were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was overvaluing the collateral of certain loans; (2) that, as such, the Company was failing to timely take impairment charges to reduce the carrying values of certain loans to appropriate market values; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result, the Company's financial results were materially false and misleading at all relevant times.
On October 20, 2010, Green Bankshares announced its financial results for the 2010 fiscal third quarter and disclosed that the Company's net charge-offs increased on a sequential basis to $36.5 million from $4.9 million in the prior quarter. Moreover, the Company indicated that it had engaged an independent third-party loan reviewer, which contributed to the asset quality-impact reflected in its third quarter results. On this news, shares of the Company declined $2.79 per share, more than 43%, to close on October 21, 2010, at $3.68 per share, on unusually heavy volume.
Then, on November 9, 2010, after the market closed, the Company announced that in consultation with the Federal Reserve Bank of Atlanta, Green Bankshares had given notice to the U.S. Treasury Department that the Company was suspending the payment of regular quarterly cash dividends on the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series A, issued to the U.S. Treasury Department. Further, the Company disclosed that "two large relationships totaling approximately $31.4 million, after charge-offs of $20.7 million," had defaulted during the third quarter. According to the Company, "these borrowers had been paying interest only and were current but new appraisals ordered during the quarter showed collateral shortfalls that caused the Company to move these relationships to non-accrual and charge them down to the collateral values."
As a result of this news, shares of the Company declined $1.08 per share, more than 29.5%, to close on November 10, 2010, at $2.57 per share, on unusually heavy volume.
The Private Securities Litigation Reform Act of 1995 ("PSLRA") requires the Court to appoint a "Lead Plaintiff" in this case. Any person or group who suffered a loss as a result of purchasing Green Bankshares securities between January 19, 2010, and November 9, 2010, may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than the January 18, 2011 deadline.
Glancy Binkow & Goldberg LLP is a law firm with significant experience in prosecuting class actions, substantial expertise in actions involving corporate fraud, and is representing Green Bankshares shareholders in this litigation.
If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201‑9150, Toll Free at (888) 773‑9224, by e‑mail to email@example.com, or visit our website at http://www.glancylaw.com.
CONTACT: Glancy Binkow & Goldberg LLP, Los Angeles, CA Lionel Z. Glancy Michael Goldberg (310) 201-9150 (888) 773-9224 firstname.lastname@example.org www.glancylaw.com