Money Laundering-Themed Securities Suits Are On The Rise
By Harry Dixon ( April 11, 2018, 12:01 PM EDT) -- On March 30, 2018, BancorpSouth Inc., its CEO James D. Rollins III, its former chief financial officer William L. Prater, and former chief operating officer James V. Kelley reached a $13 million settlement agreement with a group of BancorpSouth's shareholders in class action litigation in the U.S. District Court for the Middle District of Tennessee. The complaint alleged BancorpSouth violated federal securities laws between July 12, 2013, and July 21, 2014, by making materially misleading statements and omissions about, among other things, BancorpSouth's compliance with anti-money laundering and Bank Secrecy Act regulations. It further alleged that although BancorpSouth and the above-named executives made assurances BancorpSouth was in compliance with BSA/AML regulations, in reality the Federal Deposit Insurance Corp. was investigating BancorpSouth's BSA/AML practices, and that BancorpSouth's failure to comply would have consequences for its proposed mergers with Ouachita Bancshares Corp. and Central Community Corp....
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