Class action lawsuit filed against Enterprise Financial

Claims company reported false income

Milberg LLP filed a class action lawsuit against Enterprise Financial Services Corp. on Thursday, on behalf of those who purchased the company’s common stock anytime between April 20, 2010, and Jan. 25.

On Jan. 25, Enterprise Financial announced that it would be restating some of its finances for 2010 and 2011, causing its stock to plummet by almost 19 percent. The new lawsuit alleges that the company violated the Securities Exchange Act of 1934 by recording false income on loans that the Federal Deposit Insurance Corp. had covered with loss share agreements.

Read more at MarketWatch, or on the case website.

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