A new shareholders lawsuit accuses the top executives of Cary-based yellow pages publisher R.H. Donnelley of misleading investors.

Chief executive David Swanson and two other executives at Donnelley, which filed for Chapter 11 bankruptcy in May, are accused in the lawsuit of making false statements or failing to disclose adverse facts to keep the company's stock price artificially high.

The lawsuit, filed in federal court in Delaware, asks to be certified as a class-action suit representing shareholders who purchased Donnelley stock between July 26, 2007, and May 28 of this year.

Mike Truell, a spokesman for the company, said the allegations are without merit and will be "vigorously defended."

Crescent reports lower profit

CARY The corporate parent of Crescent State Bank reported lower third-quarter profits. The Cary bank reported a profit of $214,000, or 2 cents per share, down from $746,000 a year earlier.

Earnings were weighed down by a $676,000 increase in the provision for loan losses and $422,000 in dividends paid to the U.S. Treasury stemming from the $24.9 million in federal stimulus money.

The bank reported improvement in its net interest margin, a measure of profitability on loans and investments. "In today's environment, any time you can report positive earnings, you can consider it a success," said CEO Mike Carlton. "It's a very challenging time."

Compiled from News & Observer staff reports.