San Diego, CA -- (SBWIRE) -- 08/10/2023 -- An investor, who purchased shares of Arrow Financial Corporation (NASDAQ: AROW), filed a lawsuit against Arrow Financial Corporation over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Arrow Financial Corporation (NASDAQ: AROW) have certain options and for certain investors are short and strict deadlines running. Deadline: August 22, 2023. NASDAQ: AROW investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Glens Falls, NY based Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. On March 16, 2023, after-market, Arrow Financial Corporation filed a notification of late filing on Form 12B-25, which stated that Arrow is unable to file its Annual Report within the prescribed time period without unreasonable effort or expense. The Company explained that it required additional time to complete assessment of the effectiveness of internal controls over financial reporting as of December 31, 2022 and that KPMG LLP, the Company's independent accounting firm, had not yet completed its audit procedures.

On March 31, 2023, Arrow Financial Corporation filed on Form 12b-25/A, an Amended Notice of Late Filing. The Company disclosed that it required additional time to complete management's assessment of the effectiveness of internal controls over financial reporting. The filing did disclose, however, that management has identified and expects to disclose deficiencies in the Company's internal controls over financial reporting in the 2022 Form 10-K including:

- the failure to design and maintain an effective risk assessment process;
- the failure to design and maintain effective monitoring activities relating to providing sufficient management oversight over the internal control evaluation process to support the internal control objectives, and assessing and communicating the severity of identified deficiencies in a timely manner to those individuals responsible for taking corrective action; and
- the design and execution of controls with respect to the Company's core system including post-migration from its legacy core system Bankway to its new operating system FIS Horizon in September 2022 such as with respect to the general ledger account reconciliation process. The Company maintained that it was working diligently to file the Form 10-K Annual Report as soon as practicable and that it "does not expect any material change to the financial results included in the 2022 Form 10-K."

On April 5, 2023, Arrow Financial Corporation filed a current report on Form 8-K, which disclosed receipt of a notice from NASDAQ that the Company is noncompliant with the periodic filing requirements for continued listing for NASDAQ.

On May 11, 2023, Arrow Financial Corporation filed a notice of late filing on Form 12b-25 disclosing the Company's inability to file its 1Q23 Form 10-Q with the SEC 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 May 15, 2023, during pre-market hours, Arrow Financial Corporation filed a Form 8-K with the SEC, disclosing receipt of a second notice of non-compliance from NASDAQ for violation of the periodic filing requirement for failure to timely file the Company's 1Q23 Form 10-Q. The Form 8-K also disclosed that Defendant Murphy, President, CEO and Board member of Arrow, terminated his employment in all capacities with the Company, effective May 12, 2023.

Shares of Arrow Financial Corporation (NASDAQ: AROW) declined from $34.90 per share on August 17, 2022, to as low as $17.63 per share on May 17, 2023.

The plaintiff claims that between March 12, 2022 and May 12, 2023, the Defendants made false and/or misleading statements and/or failed to disclose that Arrow Financial Corporation maintained defective disclosure controls and procedures and internal controls over financial reporting, that the foregoing increased the risk that the Company could not timely file one or more of its periodic financial reports with the SEC as required by the NASDAQ's listing requirements, that accordingly, Arrow was at an increased risk of being delisted from the NASDAQ, that following the disclosure of deficiencies in the Company's disclosure controls and procedures and internal controls over financial reporting, Arrow Financial Corporation downplayed the severity of these issues and the associated risks, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Arrow Financial Corporation (NASDAQ: AROW) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.