Arrow Financial (AROW) Investor Settlement
Arrow Financial reached an agreement with $AROW investors to settle claims about the financial reporting issues and the risk of NASDAQ delisting.
Case Details:
On May 11, 2023, Arrow Financial Corporation (AROW) disclosed that it could not timely file its quarterly report “because the Company continued to require additional time to complete management’s assessment of the effectiveness of internal controls over financial reporting as of December 31, 2022”
On this news, $AROW fell 1.66%.
Then, on May 15, 2023, Arrow disclosed that it received a second notice of non-compliance with the NASDAQ’s periodic filing requirements because of the Company’s failure to timely file the 1Q23 10-Q with the SEC.
Arrow also disclosed that the Company’s “President and Chief Executive Officer and a member of the Board of Directors of Arrow terminated his employment as President and CEO and as a director of the Company and from all other positions he holds with the Company.”
On this news, $AROW fell 2.71%.
Based on these events, Arrow and its leaders were accused of hiding or misleading about the following details:
Arrow had defective disclosure controls and procedures, posing a risk of delayed financial report filings.
This increased the chance of NASDAQ delisting for Arrow.
After disclosing these issues, Arrow downplayed their severity and associated risks.
Arrow Financial reached an agreement with $AROW investors to settle claims about the financial reporting issues and the risk of NASDAQ delisting.