Wednesday, January 13, 2010

New ERISA Class Action Filed Against Sterling Savings Bank

An ERISA class-action lawsuit was filed Monday by an employee of one of Washington State's largest commercial banks, Spokane-based Sterling Savings Bank. The lawsuit, filed in United States District Court, claims that the bank and its holding company failed to protect employees’ investment in company stock through the company’s 401(k) Plan. The lawsuit alleges that Sterling's stock price has imploded as the result of ill-advised commercial real estate, construction and land loans, improper accounting and inadequate capitalization. The lawsuit also alleges that Sterling and other defendants failed to properly manage pension funds by maintaining a large investment in Company stock long after the stock became an imprudent investment. The lawsuit also charges that the company deliberately misled employees and shareholders on the value of the stock and failed to secure adequate reserves against its credit portfolio. [For more information about the lawsuit, see the website for the Plaintiff's attorneys]