#United States #New York #Pomerantz Law #TBBK #The Bancorp

Investor Alert: Class Action Lawsuit against The Bancorp, Inc.

Pomerantz LLP recently issued a significant alert regarding a class action lawsuit filed against The Bancorp, Inc. (NASDAQ: TBBK). Investors who have experienced financial losses related to their investment in Bancorp are strongly encouraged to come forward. This lawsuit concerns allegations of securities fraud against the Company and certain directors and officers, indicating unlawful business practices may have occurred.

Background of the Case

The class action lawsuit underscores the necessity for investors to connect with Pomerantz LLP. Danielle Peyton, an attorney at the firm, is leading the outreach, and she has shared contact details for potential claimants. Interested parties can email her or use the toll-free number to inquire about their possible involvement in the case.

Moreover, the class action is set against the backdrop of alarming reports released by Culper Research on March 21, 2024. These reports accused Bancorp of failing to appropriately disclose significant risks associated with its real estate bridge loans (REBLs). It was alleged that these loans were provided to borrowers that could be deemed unsophisticated, lured by promises of substantial passive income. The accusations specified that Bancorp's loan portfolio includes distressed properties suffering from substantial vacancies and looming risks of foreclosure.

In light of these issues, there is a concerning mismatch between Bancorp's public assurances about the safety of its loan portfolio and the realities revealed in these reports. Culper Research criticized Bancorp for maintaining that there were no substantive risks of default, while their extensive findings suggested the opposite.

Impact on Bancorp's Stock

The ramifications of these reports on Bancorp's stock were immediate and profound. Following the publication of the allegations, shares fell by over 10%, closing at $32.12 per share by March 21, 2024. Investors reacted negatively to the news, reflecting a broader concern about the company’s transparency and operational integrity.

As if this wasn't enough, further damaging news surfaced on October 24, 2024, with the release of Bancorp's third-quarter financial results, where they confirmed the increase in their reserve for potential loan losses linked to REBLs. This announcement led to another significant drop in the stock price, down nearly 14.5%, closing at $47.01 by October 25, 2024.

The troubles continued when, on March 4, 2025, it was brought to light that the Company's financial statements from the fiscal years ending December 31, 2022, to 2024 were no longer reliable due to lack of auditor approval. This revelation hindered their ability to file their annual report on time, further affecting investor confidence and contributing to a stock drop of approximately 4.4% to end at $51.25 on March 5, 2025.

Conclusion

In summary, the looming class action lawsuit represents a critical opportunity for investors who may have been impacted by Bancorp’s alleged misconduct. Pomerantz LLP, known for its significant expertise in securities class actions, advocates for the rights of investors situations such as these. If you have invested in Bancorp and believe you have suffered losses during the relevant period, it is crucial to act swiftly and seek legal counsel to ensure your rights are protected. For more information on joining the class action and the ensuing processes, visit Pomerantz Law Firm.

This case serves as a stark reminder of the importance of transparency and integrity within corporate operations. Investors are encouraged to remain vigilant and informed about the companies they choose to support financially.