Robbins Geller Alerts Investors in The Bancorp to Class Action Opportunities Amid Significant Losses

Investor Alert: The Bancorp Class Action Lawsuit

In a critical announcement, the law firm Robbins Geller Rudman & Dowd LLP has informed investors of The Bancorp, Inc. (NASDAQ: TBBK) about an opportunity to spearhead a class action lawsuit due to significant losses incurred during a specific time frame. This legal pursuit aims to address the alleged violations of the Securities Exchange Act of 1934 by The Bancorp and several of its key executives.

Understanding the Situation

For those who purchased or acquired The Bancorp securities between January 25, 2024, and March 4, 2025, you have until May 16, 2025, to step forward as a potential lead plaintiff in this class action lawsuit. The case, identified as Linden v. The Bancorp, Inc. (No. 25-cv-00326 in the District of Delaware), raises serious allegations about misleading statements made by the company during the defined Class Period.

Allegations Against The Bancorp

The Bancorp operates as a financial holding company for The Bancorp Bank, offering various banking products and services across the United States. The allegations state that the company has failed to appropriately disclose and manage risks related to its commercial real estate bridge lending portfolio. Key points of contention include:

1. False Statements: The Bancorp allegedly underrepresented the risk of default in its REBL loan portfolio, misleading investors.
2. Inadequate Methodologies: It’s claimed that the company’s methodology for expected credit losses did not suffice, leading to an underestimation of potential credit losses.
3. Weak Internal Controls: Reports suggest significant weaknesses in the internal controls over financial reporting which further complicated matters for investors.
4. Unreliable Financial Statements: The financial statements during this period lacked auditor approval, raising questions about their authenticity.

The allegations suggest that these failures contributed to a dramatic 10% drop in stock prices following the release of a report by Culper Research in March 2024, criticizing The Bancorp's lending policies.

Financial Consequences

In October 2024, The Bancorp further disclosed disappointing third-quarter results, prompting an additional decline of over 14% in stock prices. It became evident that the current expected credit losses method directly impacted their reported net income due to increased provisions recognized for credit losses. The situation escalated when The Bancorp reported on March 4, 2025, that they had inappropriately filed their Annual Report and acknowledged the need to retract their financial statements from the years 2022 to 2024, recognizing that they had not received the necessary auditor approval.

The Role of a Lead Plaintiff

Under the Private Securities Litigation Reform Act of 1995, any investor who acquired The Bancorp's securities during the Class Period has the right to seek the role of lead plaintiff—essentially acting on behalf of the entire class of investors. The chosen lead plaintiff would represent the collective interests of all parties in pursuit of justice and any potential recovery resulting from the lawsuit.

This position gives the lead plaintiff the discretion to select a law firm of their choice to manage the litigation process against The Bancorp.

How to Participate

Interested investors are encouraged to take action by visiting Robbins Geller’s website or contacting attorneys J.C. Sanchez or Jennifer N. Caringal at 800-449-4900 for assistance. Having a robust representation is crucial for navigating the complexities of this legal undertaking and potentially securing recovery for losses suffered during this tumultuous investment period.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP has established its reputation as one of the top law firms for representing investors embroiled in securities fraud and shareholder litigation. Demonstrating an impressive track record, the firm secured over $2.5 billion in class action recoveries in 2024 alone, showcasing their formidable presence in this area of law. With over 200 lawyers spread across ten offices worldwide, Robbins Geller stands as a pillar of support for investors seeking recourse against corporate wrongdoing.

For those affected by the recent developments with The Bancorp, now is the time to explore your options and consider taking a stand in the forthcoming class action lawsuit. Participation may pave the way for accountability and recovery in light of these troubling allegations.