Brodsky & Smith has begun the investigation of Sterling Financial’s investment of plan participants and beneficiaries assets in company stock. The investigation concerns whether administrators breached their fiduciary duties and violated the employee retirement income security act of 1974 by investing assets in company stock when it was not a prudent investment for participants’ retirement savings.
According to the law office of Brodsky & Smith, a lawsuit on behalf of those who purchased the common stock of Sterling seeking class action status, which has been filed in the US District of Washington, charges that defendants violated federal securities laws by failing to disclose the extent of seriously delinquent commercial real estate loans, construction and land loans.
In addition, the lawsuit also charges that Sterling failed to record losses for its impaired loans, causing its financial results and its Tier 1 capital ratio to be false. The investigation concerns improper behavior that harmed current and former employees that invested in the plan.
