Robbins Arroyo LLP Is Investigating the Officers and Directors of BancorpSouth, Inc. on Behalf of Shareholders
Robbins Arroyo LLP is investigating whether certain officers and directors of BancorpSouth, Inc. (NYSE: BXS) breached their fiduciary duties to shareholders. BancorpSouth is a financial holding company for BancorpSouth Bank that provides commercial and retail banking products and services to individuals and small-to-medium size businesses.
BancorpSouth Postpones Merger Due to Federal Inquiries
On July 21, 2014, BancorpSouth issued a press release announcing, among other things, the company’s second quarter financial results. In this announcement, BancorpSouth revealed that during routine supervisory activities, federal regulators identified weaknesses in the company’s procedures, systems, and processes in relation to their Bank Secrecy Act and anti-money laundering programs. In addition, the company announced that the Consumer Financial Protection Bureau is in the process of reviewing the BancorpSouth’s fair lending practices. Due to these investigations, BancorpSouth extended its timeline regarding the acquisition of Ouachita Bancshares Corp. and Central Community Corporation to June 30, 2015 in order to obtain the required regulatory approvals and satisfy required closing conditions.
In light of this news, Robbins Arroyo LLP is investigating whether BancorpSouth’s board of directors breached its fiduciary duties to shareholders by failing to implement adequate internal controls to ensure that BancorpSouth complied with federal policies and procedures regarding the Bank Secrecy Act, anti- money laundering efforts, and fair lending practices.
BancorpSouth Shareholders Have Legal Options
Robbins Arroyo LLP highlights that BancorpSouth shareholders have the option to pursue a shareholder litigation demand or shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.