#USA #San Diego #Class Action #The Bancorp #Investment Losses

Investors: Class Action Suit Against The Bancorp, Inc.

Investors in The Bancorp, Inc. (NASDAQ: TBBK) who purchased or acquired shares during the period from January 25, 2024, to March 4, 2025, now have a crucial opportunity to lead a class action lawsuit. This development has been propelled by allegations of deceptive practices committed by The Bancorp's executives that have significantly impacted the stock's value and investors' finances.

Background to the Allegations

Robbins Geller Rudman & Dowd LLP, the law firm behind this initiative, noted that potential lead plaintiffs must file their applications by May 16, 2025. The lawsuit titled Linden v. The Bancorp, Inc. suggests that during the mentioned period, The Bancorp and its top executives failed to disclose vital information regarding the risks associated with their commercial real estate bridge lending portfolio.

Key allegations include:

• - Misrepresentation of Risks: It is claimed that The Bancorp underreported the substantial risks tied to its loan portfolio, potentially leading investors to believe their investments were safer than they actually were.
• - Inadequate Provisions for Losses: The reported methodology for assessing expected credit losses was deemed insufficient and potentially misleading, suggesting an impending increase in provisions for credit losses.
• - Weak Internal Controls: The allegations point out the presence of material weaknesses in The Bancorp's internal controls over financial reporting, questioning the reliability of its financial statements.
• - Auditors' Approval Issues: The complaint claims that the financial statements, purported to be approved by auditors, lacked the necessary consent and should not be considered valid.

Timeline of Events

The first significant drop in the share price occurred on March 21, 2024, following a report from Culper Research. This report categorized The Bancorp’s portfolio as problematic, asserting that the firm misled investors by presenting a false sense of security regarding default risks.
On October 24, 2024, The Bancorp announced disappointing quarterly earnings attributed to newly identified factors contributing to credit losses. The company's acknowledgment of these factors resulted in a further 14% decline in share prices.
Finally, on March 4, 2025, The Bancorp disclosed a significant issue with its annual report, indicating that previous financial statements were no longer reliable, leading to another stock price drop.

The Role of a Lead Plaintiff

The Private Securities Litigation Reform Act of 1995 allows investors who acquired The Bancorp securities during the specified class period to seek appointment as a lead plaintiff in the class action lawsuit. A lead plaintiff typically possesses the most considerable financial interest in the lawsuit's outcome and can represent other class members in court. This role not only involves guiding the litigation but also selecting a law firm to represent the class.

Robbins Geller is a prominent firm in the field of securities fraud litigation and has a record of recovering billions for investors in similar actions. The firm encourages any investors who suffered significant losses at The Bancorp to explore this opportunity and serve as lead plaintiff.

For more information or to get in touch with the legal team, investors can visit Robbins Geller's dedicated page for The Bancorp class action lawsuit or contact the firm directly via the provided communication channels.

Conclusion

For investors feeling the burden of substantial financial losses from their investments in The Bancorp, this class action lawsuit presents a vital opportunity to potentially recover losses and hold the company accountable for its actions. Stakeholders are encouraged to act swiftly, given the approaching deadline, to ensure their voices are heard in this significant legal endeavor.