Faruqi & Faruqi, LLP Announces Investigation of Enterprise Financial Services …

NEW YORK, Jan. 28, 2012 /PRNewswire via COMTEX/ —
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential violations of federal securities law at Enterprise Financial Services Corp. (“Enterprise Financial” or the “Company”)

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The investigation focuses on the Company’s May 24, 2011 stock offering underwritten by Keefe, Bruyette & Woods and the Company’s January 25, 2012 announcement that the financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2010, and the interim financial statements included in its Quarterly Reports on Form 10-Q for each of the periods ended March 31, June 30, and September 30, for 2010 and 2011, respectively, should no longer be relied upon. Enterprise Financial stated that it had discovered an error in its process used to record income on loans covered under loss share agreements with the Federal Deposit Insurance Corporation (FDIC) during the foregoing periods. As a result, the Company admitted that it had overstated its income during these periods.

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Take ActionIf you purchased Enterprise Financial stock in the Company’s May 24, 2011 stock offering underwritten by Keefe, Bruyette & Woods and would like to discuss your legal rights, visit
www.faruqilaw.com/EFSC . You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Enterprise Financial’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (
www.faruqilaw.com ). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential matter.FARUQI & FARUQI, LLP369 Lexington Avenue, 10th FloorNew York, NY 10017Attn: Richard Gonnello, Esq.rgonnello@faruqilaw.com Francis McConville, Esq.fmcconville@faruqilaw.com Telephone: (877) 247-4292 or (212) 983-9330

SOURCE Faruqi & Faruqi, LLP

Copyright (C) 2012 PR Newswire. All rights reserved

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Jan. 31, 2012 11:29a

Philly School District’s financial assurances leave city controller Butkovitz …

The School District of Philadelphias new chief recovery officer responded Friday to the city controllers request for information about bridging a funding gap of at least $61 million by June 30.

But City Controller Alan Butkovitz said he was not sure whether the district fully had addressed his concerns about the school systems financial viability.

He said an initial review of the responses contained in the three-page letter from Recovery Officer Thomas E. Knudsen has done little to satisfy our concern, but there are ongoing written communications going back and forth to clarify our respective positions.

On Wednesday, Butkovitz said he might have to include a warning in the districts annual financial report that could hamper the districts ability to borrow money and sell bonds.

Unless the School District management can provide compelling evidence to alleviate this doubt, our Independent Auditors Report will include an explanatory paragraph to reflect our conclusion of substantial doubt [about the districts ability] to continue as a going concern.

That report, prepared by his office, is included in the districts comprehensive financial report sent each year to bond-rating agencies and bondholders. The target date for the report is Feb. 10.

Butkovitz asked Knudsen to address a series of concerns including the districts continued ineffectiveness in solving its growing budget gap and its limited authority to further cut costs by the end of business Friday.

Knudsens letter, which arrived several hours early, stressed that the district is very much a going concern and the districts management and governing board are unwavering in our commitment that it remains so.

He said: We can fully assure that the School District is in no danger of failing to meet its debt service and payroll obligations in the foreseeable future as a result of the actions we have already implemented and intend to implement.

Knudsen said he understood that Butkovitzs audit report might mention the serious financial challenges facing the district. But in light of the actions the district is taking and will take, he said, Butkovitz should not have doubts about the School Districts ability, capacity, and determination to maintain itself as a going concern.

Knudsen, a financial turnaround specialist who has been in the job for barely a week, pointed out that the budget presentation at the Jan. 19 School Reform Commission meeting outlined steps that the district had just taken that would save $23.4 million. Those actions include cuts to central office budgets; a drastic scaling back of summer school; and imposing furloughs, salary freezes, and new health-benefit contributions for nonunionized employees.

The district is currently implementing all of these initiatives, which it expects will reduce the identified gap to $37.7 million, Knudsen wrote. He said the details were available for Butkovitz to verify.

Those moves, he said, would not require the district to make further cuts in school-based services that affect students.

The district has listed other possible areas for cuts, including eliminating gifted programs, spring athletics, and the remaining instrumental music programs. In an effort to avoid such drastic measures, Knudsen said, the district was pursuing other savings options.

One, he said, is working with the districts unions to agree to a set of measures to reduce the districts labor costs through June 30.

The School District has initiated discussions with its collective bargaining units, he wrote. We are hopeful that out of these discussions, a way will be found to finish the task of balancing the districts budget without further deep cuts to school programs.

Jerry Jordan, president of the Philadelphia Federation of Teachers, said Friday that he had not been contacted by the district. And Robert McGrogan, president of the Commonwealth Association of School Administrators, which represents the principals and other administrators, said he had not been contacted by the district about additional givebacks. His union already had deferred raises and agreed to other changes to help the district this fiscal year.

We have made concessions, he said. It has come from our pocketbooks.

District spokesman Fernando Gallard confirmed that the district met Friday morning with George Ricchezza, president of Local 32BJ, Service Employees International Union, which represents bus aides, cleaners, building engineers, and mechanics.

Ricchezza had been asking to meet with district officials for weeks.

His members did not receive expected raises this month, and pink slips went out to 1,406 members warning they could be laid off Dec. 31. The district has said that the number of union employees to be let go would depend on whether a dispute over contract concessions could be resolved.

Contact staff writer Martha Woodall at 215-854-2789 or martha.woodall@phillynews.com.