Pending Lawsuit Against The Bancorp, Inc. by Shareholders Foundation for Securities Violations

Pending Lawsuit Against The Bancorp, Inc.

The Shareholders Foundation, Inc. has announced the initiation of a lawsuit against The Bancorp, Inc. (NASDAQ: TBBK). This lawsuit raises serious allegations regarding the company's failure to adequately disclose significant risks associated with its REBL loan portfolio. Investors who purchased shares prior to February 2024 and continue holding them may have a stake in this legal matter.

Allegations in the Lawsuit

Filed on March 14, 2025, the lawsuit claims that The Bancorp, Inc. did not inform investors about crucial information that could impact their investment decisions. Specifically, the plaintiff alleges that the company significantly downplayed the risk of default or losses linked to its loan portfolio. Furthermore, it highlights concerns about the company's credit loss methodology being inadequate to address potential loan losses adequately.

According to the allegations, The Bancorp appeared likely to increase its provisions for credit losses, raising further questions about the integrity of its financial practices. There have been claims of material weaknesses in internal control over financial reporting, as well as concerns that financial statements had not received approval from an independent auditor.

These shortcomings lead the plaintiff to argue that The Bancorp's positive assertions about its business operations and future prospects misled investors, as they lacked a reasonable factual basis.

Implications for Investors

The lawsuit poses serious implications for all investors who purchased shares of The Bancorp, particularly those who did so before the specified date. Stakeholders are encouraged to communicate with the Shareholders Foundation for potential options available to them.

Michael Daniels, a representative of the Shareholders Foundation, can be contacted at +1(858) 779-1554 or through [email protected] for further information regarding this case.

About Shareholders Foundation

The Shareholders Foundation, Inc. operates as a legal monitoring service specializing in shareholder issues. It serves as an information resource for class action lawsuits, settlements, and various legal developments within the financial markets. However, it is essential to note that the Shareholders Foundation is not a law firm, and any information provided should not be interpreted as legal advice.

In conclusion, if you are among the investors in The Bancorp, it is crucial to remain informed about the progress of this lawsuit. The allegations against the company, if proven, may underpin further actions that could significantly affect share values. Stay connected with resources like the Shareholders Foundation to navigate these developments effectively.