SAN FRANCISCO, Oct. 1, 2020 /PRNewswire/ -- Hagens Berman urges Fulton Financial Corporation (NASDAQ: FULT) investors with significant losses to submit your losses now. The firm is investigating possible securities law violations and certain investors may have valuable claims.
Fulton Financial Corporation (FULT) Investigation:
The investigation centers on the propriety of Fulton's financial reporting, including accounting for its mortgage servicing rights ("MSR") assets and its MSR valuation allowance.
Each quarter in 2016 through mid-2017, Fulton's reported Earnings Per Share met or exceeded analyst consensus expectations. The Company claimed the success was "a clear reflection of our efforts to focus on organic growth and take advantage of the local market disruption."
But on Mar. 1, 2019, the Company revealed that the SEC had launched an investigation regarding certain accounting determinations that could have impacted the Corporation's reported earnings per share.
Then, on Sep. 28, 2020, the SEC filed a settled action against Fulton, finding that the Company inaccurately presented its financial performance in 2016 and early 2017. Specifically, during two quarters in which Fulton was on track to meet or beat analyst consensus EPS estimates, the SEC found that Fulton's public filings included a valuation allowance for its mortgage servicing rights that was at odds with the valuation methodology described in the same filings. Then, in mid-2017, Fulton belatedly reversed the valuation allowance, increasing its EPS by a penny in a quarter when it otherwise would have fallen short of consensus estimates. As a result of this fraudulent earnings smoothing, the SEC found that Fulton created the misleading appearance of consistent earnings across multiple reporting periods.
"We're focused on investors' losses and determining whether Fulton engaged in illegal earnings smoothing," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Fulton investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Fulton should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FULT@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP