NEW YORK, April 01, 2020 (GLOBE NEWSWIRE) — Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, has filed a federal securities class action in the Eastern District of Michigan on behalf of its client and all similarly situated investors who purchased or otherwise acquired common stock of Sterling Bancorp, Inc. (“Sterling” or the “Company”) (SBT) in or traceable to the Company’s initial public offering (“IPO”) on November 17, 2017 through March 17, 2020, inclusive (the “Class Period”).  The class action alleges violations of the federal securities laws against Sterling and certain of its current and former officers and directors, and the underwriters for the Company’s IPO.

Headquartered in Southfield, Michigan, Sterling specializes in residential mortgages.  Its leading product, the Advantage Loan Program, at all relevant times accounted for the bulk of the Company’s loans. The Complaint alleges that Sterling made false and misleading statements to the public throughout the Class Period, repeatedly touting its strict underwriting, disciplined lending and its Advantage Loan Program.  On December 9, 2019, the Company announced it had ”temporarily suspended its Advantage Loan program in connection with an ongoing internal review of program documentation procedures.”  On this news, Sterling stock fell $2.16 per share to close at $7.29, a decline of nearly 23%.

On March 6, 2020, Sterling disclosed that “preliminary results from Special Committee’s internal review indicate that certain employees engaged in misconduct in connection with the origination of such loans” and that a significant number of employees, including the Vice President in-charge of oversight of the Advantage Loan Program in California, have been terminated or have resigned. The Company also announced that it had shut down the Advantage Loan Program. The Company also disclosed a pending investigation by the Office of the Comptroller of the Currency and a grand jury subpoena from the U.S. Department of Justice.  Sterling’s stock declined from $6.67 to close at $4.88 on Monday, March 9, 2020, a decline of $1.83 or 27%.

On March 17, 2020, Company notified the SEC that it was delaying in filing its Annual Report to allow the internal review to be completed and reflected in its public filings. On this news, Sterling stock fell from $4.54 on March 17 to close at $2.94 on Wednesday, March 18, 2020, a decline of $1.83 or 35%. Following the Company’s failure to timely file its Annual Report, NASDAQ notified Sterling that it is no longer compliant with the listing requirements for its stock.

If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than April 27, 2020.  Any member of the proposed Class may move to serve as the Lead Plaintiff through counsel of their choice.

If you have suffered a net loss from investment in Sterling’s common stock from November 17, 2017 through March 17, 2020, you may obtain additional information about this lawsuit and your ability to become a Lead Plaintiff, by contacting Barbara Hart at bhart@lowey.com or by calling 914-733-7227 or David Harrison at dharrison@lowey.com or by calling 914-733-7228.  The class action is titled Orr v.  Sterling Bancorp, Inc. et. al,  No. 20 cv 10788 (E.D. Mich.).



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