SLFI Sterling Financial (MM)

RADNOR, Pa., June 20 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all common stock purchasers of Sterling Financial Corporation (NASDAQ:SLFI) ("Sterling Financial" or the "Company") between April 27, 2004 and May 24, 2007, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The Complaint charges Sterling Financial and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Sterling Financial, through its subsidiaries, provides banking and financial services to individuals and businesses in the United States. One of the Company's affiliates is Equipment Finance LLC ("EFI"). EFI specializes in financing the purchases of income producing equipment for companies and owner/operators in the forestry, land clearing, and construction industries. The Complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's financial well-being. Specifically, defendants failed to disclose or indicate the following: (1) that alleged "irregularities" at EFI were in fact a deliberately orchestrated and sophisticated loan scheme which materially misstated Sterling Financial's financial statements; (2) that the sophisticated loan scheme concealed credit delinquencies, falsified financing contracts and related documentation, and subverted established internal controls and reporting systems; (3) as a result of the above, the Company's net income and earnings were materially overstated by as much as $165 million; (4) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times. On April 30, 2007, the Company shocked investors when it announced that it would restate its previously issued financial statements for the years of 2004 through 2006, and that it was postponing its 2007 annual shareholder meeting "as a result of information obtained from an internal investigation." The Company announced that it had received information suggesting "irregularities" in financing contracts at EFI. In connection with the investigation, two senior EFI executives were placed on leave, and a new Chief Executive Officer ("CEO") and Chief Operating Officer were installed. On this news, shares of the Company's stock fell $4.07 per share, or 19.6 percent, to close on April 30, 2007 at $16.65 per share, on unusually heavy trading volume. The following day, shares of the Company's stock declined an additional $2.00 per share, or 12 percent, to close on May 1, 2007 at $14.65 per share. Then on May 24, 2007, the Company further revealed that Sterling Financial's shareholders were subjected to a "sophisticated loan scheme ... to conceal credit delinquencies, falsify financing contracts and related documents, and subvert Sterling's established internal controls and reporting systems." As a result of the scheme, the Company stated that it would record a charge of up to $165 million on its financial statements, it would have to restate multiple years of financial results, and it would have to suspend its dividend payments to shareholders. On this news, shares of the Company's stock fell an additional $6.19 per share, or 38.3 percent, to close on May 25, 2007 at $9.97 per share, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/ If you are a member of the class described above, you may, not later than July 24, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin Barroway Topaz & Kessler or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin Barroway Topaz & Kessler, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP CONTACT: Darren J. Check, Esq., or Richard A. Maniskas, Esq., both of Schiffrin Barroway Topaz & Kessler, LLP, +1-888-299-7706 (toll free), +1-610-667-7706, Web site: http://www.sbtklaw.com/

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