#United States #Los Angeles #Securities Fraud #The Bancorp Inc #TBBK

Investors of The Bancorp, Inc. (TBBK) to Lead a Class Action Lawsuit

On May 6, 2025, the Law Offices of Frank R. Cruz publicly shared significant news affecting investors of The Bancorp, Inc. (NASDAQ: TBBK). Those who have experienced financial losses connected to the company now have an exciting opportunity to participate in a class action lawsuit centered around allegations of securities fraud. The deadline to join this action is set for May 16, 2025.

What Exactly Is the Allegation?

The details regarding the allegations are quite serious and revolve around misleading statements and omissions made by the company's management. According to the complaint, between January 25, 2024 and March 4, 2025, the executives of The Bancorp failed to adequately inform investors about several critical issues.

1. Risk of Default or Loss: One of the primary concerns was that the company reportedly underrepresented the risks associated with its REBL loan portfolio. Investors were not fully informed about these substantial risks, which could have impacted their decision-making.
2. Methodology of Credit Losses: The lawsuit argues that the methodology employed by The Bancorp to project credit losses was insufficient. This lack of a robust framework potentially resulted in unpredictable financial outcomes.
3. Increased Provisions for Credit Losses: It is alleged that the company was likely to increase its credit loss provisions, indicating an underlying issue that was not disclosed to investors.
4. Material Weakness in Internal Controls: Furthermore, the complaint points out material weaknesses in internal controls related to financial reporting, which casts a shadow over the company's reliability.
5. External Auditor Approval: Notably, the financial statements of The Bancorp were not approved by an independent auditor, raising further concerns about their validity.
6. Misleading Positive Statements: Due to the aforementioned issues, statements made by the company's management about their operations and future prospects were deemed misleading or lacking a reasonable basis.

How Can Investors Participate?

Investors who have incurred losses as a result of investing in The Bancorp, Inc. are encouraged to take action. To learn more about participating in this class action lawsuit, the Law Offices of Frank R. Cruz invites affected investors to reach out. Potential plaintiffs are urged to contact the firm through various channels:

• - Phone: 310-914-5007
• - Email: email protected]
• - Website: [www.frankcruzlaw.com

When reaching out via email, investors should include their contact information and the number of shares they purchased. It’s important to note that taking action at this stage is not mandatory; affected individuals may choose to seek legal representation or remain passive members of the class action.

Conclusion

As the deadline approaches, investors from The Bancorp, Inc. are being offered a crucial chance to have their voices heard regarding the fraud allegations levied against the company. By stepping forward, they can pursue justice and potentially recover their losses arising from misleading practices. This class action could serve as a crucial turning point in holding public companies accountable for accurate disclosures and protecting investor rights.