Coral Gables, FL (Vocus) October 16, 2010
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) comments on the Pacific State Bancorp SEC Form 8-K filing on May 18, 2010 of the Notice of Delisting from the NASDQ Stock Market. The Notice determined that Pacific State Bancorp stock bid price continued to close under $1.00 per share. Pacific State Bancorp, headquartered in Stockton, California, commenced operations on June 24, 2002 when it acquired all the issued and outstanding shares of Pacific State Bank. Pacific State Capital Bancorp, bank holding company structure had one bank subsidiary and two unconsolidated subsidiary guarantor trusts, Pacific State Statutory Trusts I and II. The bank holding company provided a wide range of banking services for small to middle-market businesses and individuals. Bank operations experienced increased losses from lending activities and decreased net interest income resulting in substantial losses for Pacific State Bancorp shareholders. Investors in Pacific State Bancorp stock should consider what recourse is available to recover their investment losses in stock held in full-service brokerage accounts. The Financial Industry Regulatory Authority, (FINRA) is a self regulating organization with sales practice rules and regulations that govern the securities industry’s conduct and safeguard the investing public. For investors who accumulated shares in Pacific State Bancorp, the recent developments represent a significant loss in income and investment.
For many investors, Pacific State Bancorp stock represented a long term holding acquired through investment, inheritance or as a founding member. Full-service brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice concerning risk management strategies for concentrated stock positions. When an account is concentrated in a single stock position, it is considered suitable to recommend the implementation of risk management strategies to protect the value of the concentrated position. Brokerage firms are required to supervise the activities in brokerage accounts, losses from securities concentration can be attributed to the failure to adequately supervise the stockbroker and the brokerage account. Recommendations of unsuitable investments and/or maintaining unprotected concentrated stock positions are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $250,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.