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Pomerantz Law Firm Alerts Bancorp Investors on Class Action Lawsuit

Investors in The Bancorp, Inc. (NASDAQ: TBBK) are being alerted by Pomerantz LLP about a class action lawsuit concerning the company. This legal action has been initiated due to allegations of securities fraud and other unlawful business practices that the company and certain of its directors or officers may have engaged in.

Details of the Lawsuit

The law firm is encouraging affected investors to reach out to Danielle Peyton for further information. Those interested are asked to include their personal details and the number of shares they acquired. Such inquiries are especially crucial before the approaching deadline on May 16, 2025. Investors will need to ask the court to designate them as Lead Plaintiff in the ongoing class action.

The lawsuit follows a controversial report published by Culper Research on March 21, 2024, which claimed that The Bancorp had significantly misrepresented risks associated with various real estate bridge loans (REBLs). According to the report, the company’s loan book included numerous unqualified syndicated borrowers, lured in with unrealistic promises of quick wealth.

Accusations of Mismanagement

Culper's report painted a troubling picture of The Bancorp's REBL portfolio, describing it as riddled with failing properties and high vacancy rates. Assertions were made that the company falsely reassured investors regarding the soundness of its loan portfolio, while in reality, serious risks and potential losses loomed. It stated that the company's reserve supporting its REBL loans was grossly insufficient - a mere $4.7 million, or 0.24% of its total loan book, which the report claimed fell significantly short of adequate protective measures.

This alarming information led to an immediate drop in Bancorp's stock prices, witnessing a fall of 10.15% when it closed at $32.12 on March 21, 2024.

Financial Reporting Controversies

The situation further escalated when Bancorp disclosed its financial performance for the third quarter of 2024 on October 24, leading to a significant price decline of 14.47% as the stock closed at $47.01 on October 25. The press release highlighted net income figures of $51.5 million for the quarter but was accompanied by revelations regarding revised provisions for credit losses, attributing losses partially to complications surrounding REBLs.

To complicate matters further, in March 2025, Bancorp informed stakeholders that their previously published financial statements from 2022 to 2024 were no longer reliable, referencing issues with audit approvals and pending reporting obligations. This announcement resulted in an immediate stock price decline of 4.38% to $51.25 per share.

The Role of Pomerantz LLP

Pomerantz LLP is a well-respected law firm with a solid reputation in corporate, securities, and antitrust class litigation. Founded by Abraham L. Pomerantz, the firm has an established history of advocating for investors seeking justice in cases of securities fraud. It continues to assist investors who believe they have suffered financial losses due to misleading or fraudulent activities.

Investors are urged to actively engage with Pomerantz LLP during this critical learning phase to ensure they stay informed of their rights and any necessary actions they must take.

For further inquiries or concerns regarding the class action or investment strategies, interested parties should contact Pomerantz LLP directly. This class action serves as a reminder of the importance of transparency and integrity in the corporate landscape, especially in times of financial uncertainty.