Smithtown Bancorp Securities Litigation Settlement
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Welcome to the Smithtown Bancorp Securities Litigation Settlement Website

This website has been established to provide general information regarding the Smithtown Bancorp Securities Litigation. The capitalized terms used on this website and not defined herein shall have the same meanings ascribed to them in the Stipulation and Agreement of Settlement dated January 9, 2015.

This case is currently pending before the Honorable Sandra L. Townes in the United States District Court for the Eastern District of New York (the "Court"). 

On February 25, 2010, a putative class action alleging violations of federal securities laws was filed in the United States District Court for the Eastern District of New York, referenced herein as the “Action.” The Court has appointed the law firm of Robbins Geller Rudman & Dowd LLP as Lead Counsel.  The Defendants are Smithtown Bancorp, Inc. ("SBI" or the "Company"), People’s United Financial, Inc. (as successor to SBI), People’s United Bank (n/k/a Peoples' United Bank, National Association) (as successor to SBI) (collectively, “People’s United”), Bradley E. Rock and Anita M. Florek.  The Lead Plaintiffs are Waterford Township Police & Fire Retirement System and Michael L. Cox.

The Second Consolidated Amended Class Action Complaint filed in the Action on April 30, 2013 against the Defendants generally alleges, among other things, that during the Class Period, the period from March 13, 2008 through and including February 1, 2010, SBI engaged in a variety of unsafe and/or unsound banking practices, which rendered SBI unable to timely identify and monitor past due loans, loans with emerging credit weaknesses, and loans in violation of bank policy. Lead Plaintiffs further alleged that SBI failed to calculate or maintain its allowance for loan and lease losses (“ALLL”) in conformity with Generally Accepted Accounting Principles, materially overstated its operating results and fostered a materially misleading impression about the true state of SBI’s financial well-being. It is also asserted that these allegedly false and misleading statements and omissions artificially inflated the price of SBI common stock.

It is further alleged that Class Members purchased SBI common stock during the Class Period at prices artificially inflated as a result of the Defendants’ dissemination of materially false and misleading statements. 

On July 18, 2014, the Court denied Defendants’ motion to dismiss the Action, and Defendants’ motion for an interlocutory appeal of the Court’s order on the motion to dismiss was fully briefed at the time this Settlement was reached.

Defendants deny each and all of the claims and contentions of wrongdoing alleged by Lead Plaintiffs in the litigation. Defendants contend that they did not make any materially false or misleading statements, they disclosed all material information required to be disclosed by the federal securities laws and any alleged misstatements or omissions were not made with the requisite intent or knowledge of wrongdoing. Defendants also contend that any losses suffered by members of the Class were not caused by any false or misleading statements by Defendants and/or were caused by intervening events.

In exchange for the Settlement and the release of the Released Claims (defined in the Notice) as well as dismissal of the Action, Defendants have agreed that a payment of $1.95 million will be made by Defendants (or on their behalf) to be divided, after taxes, fees, and expenses, pro rata among all Class Members who send in a valid Proof of Claim form.

The Court directed that everyone who fits this description is a Class Member: all Persons who purchased SBI common stock during the period from March 13, 2008, through and including February 1, 2010, except those Persons and entities that are excluded, as described in the Notice.

Although the information in this website is intended to assist you, it does not replace the information contained in the Notice of Pendency of Class Action and Proposed Settlement, Motion for Attorneys' fees and Settlement Fairness Hearing and Stipulation and Agreement of Settlement, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

SUBMIT A PROOF OF CLAIM FORM The only way to get a payment. Proof of Claim forms must be postmarked or submitted online on or before October 5, 2015.
EXCLUDE YOURSELF Get no payment. This is the only option that allows you to ever be part of any other lawsuit against the Defendants or any other Released Persons about the legal claims in this case. Exclusions must be received on or before September 8, 2015.
OBJECT Write to the Court about why you do not like the Settlement, the Plan of Distribution, and/or the request for attorneys’ fees, costs, and expenses. You will still be a member of the Class. Objections must be received by the Court and counsel on or before September 8, 2015.
GO TO A HEARING Ask to speak in Court about the fairness of the Settlement. Requests to speak must be received by the Court and counsel on or before September 8, 2015.
DO NOTHING Get no payment. Give up your rights.