#USA #New York #Class Action #TBBK #The Bancorp

Faruq & Faruqi Alerts Investors of Class Action Lawsuit Against The Bancorp

Faruqi & Faruqi, LLP, a prominent national securities law firm, has recently called attention to a potential class action lawsuit against The Bancorp, Inc. (TBBK). The firm is currently investigating claims related to misleading statements made by the Company that may have harmed investors financially. This announcement comes with an important reminder to investors who have incurred losses of over $50,000 during the specific period of January 25, 2024, to March 4, 2025, as they have until May 16, 2025, to assert their rights as lead plaintiffs in this case.

Faruqi & Faruqi's Securities Litigation Partner, James (Josh) Wilson, has urged affected investors to reach out directly to discuss their options. The firm promises to provide valuable legal guidance to those who suspect their losses are linked to the alleged securities violations by The Bancorp. The investigation is based on allegations that the Company and its executives made false and/or misleading statements about the significant risks within their loan portfolio, specifically regarding real estate bridge loans (REBLs).

The crux of the complaint suggests that The Bancorp had downplayed the risks associated with its REBL portfolio, leading to material weaknesses in its financial reporting. A pivotal report issued by Culper Research on March 21, 2024, shed light on the Company's purported misrepresentation of risk factors affecting its loan book. The report claimed that The Bancorp’s portfolio was fraught with risky loans and inadequate allowances for potential credit losses, sparking concern among investors.

Consequently, after this report was released, The Bancorp’s share price saw a significant decline of 10.15%, closing at $32.12. Moreover, further announcements on financial results, coupled with the news that the Company’s financial statements could no longer be relied upon, contributed to a further decrease in share price by 14.47% as well.

The firm emphasized that the lead plaintiff serves a crucial role in spearheading the class action, representing the collective interest of all affected investors. Anyone with information regarding The Bancorp's operations is encouraged to reach out to Faruqi & Faruqi, including former employees or whistleblowers, to aid in the investigation.

Investors are advised that participation in the class action does not diminish their ability to recover damages. Whether one chooses to serve as a lead plaintiff or remain an absent class member does not affect their potential for recovery. It is crucial for investors to act quickly and stay informed in these circumstances, especially with the deadline nearing.

Faruqi & Faruqi has a robust history in successfully recovering recovery funds for investors, making them a top choice for legal representation. With offices across New York, Pennsylvania, California, and Georgia, they are dedicated to protecting shareholder rights and ensuring justice in the financial market. Interested parties can find additional information on The Bancorp class action lawsuit on their official website or by contacting Josh Wilson directly for inquiries.

This update from Faruqi & Faruqi stands as an important notification for investors seeking justice in the wake of potential misconduct by The Bancorp, reminding them of their rights and available legal resources during this time of uncertainty. Further information will be disseminated through the firm’s website and social media channels as the case progresses.