#USA #New York #Customers Bancorp #Pomerantz Law #CUBI

Customers Bancorp Under Fire: Class Action Lawsuit Alert

Pomerantz Law Firm has recently notified investors of a class action lawsuit targeting Customers Bancorp, Inc., known by its ticker symbol CUBI. The firm has been heavily involved in dealing with securities fraud cases and is encouraging shareholders who have suffered financial loss to make contact. This move comes in response to a series of disclosures and incidents that have significantly affected the stock price of Customers Bancorp throughout 2024.

Background of the Allegations

The key issue at stake involves accusations that Customers Bancorp and its executives may have engaged in securities fraud and other potential illicit business practices. Shareholders who purchased stock during the class period are particularly urged to reach out to the firm’s representative, Danielle Peyton.

Significant Financial Disclosures

A major incident occurred on April 12, 2024, when the company informed the U.S. Securities and Exchange Commission about the termination of Chief Financial Officer Carla A. Leibold for violating company policy. Leibold has since disputed this characterization, which likely contributed to a plummet in share price — down $2.40, or about 4.89%, closing at $46.62 on April 15.

Moreover, on August 24, 2024, a damaging press release from the Federal Reserve revealed that Customers Bancorp was under scrutiny due to significant deficiencies in risk management practices, particularly regarding compliance with anti-money laundering regulations. As a direct effect of this disclosure, the company’s stock value took yet another hit, dropping $7.22, approximately 13.31%. This further decline came in the wake of a consent order from the Commonwealth of Pennsylvania regarding compliance management issues.

The Current Situation

With the stock price dramatically fluctuating, it becomes increasingly important for shareholders to understand both their rights and the ongoing legal proceedings. Investors are advised to formally register their claims and have the opportunity to act as Lead Plaintiff in this class action by January 31, 2025. Detailed information is readily available at Pomerantz’s official website.

Pomerantz LLP boasts a solid reputation as a leading firm specializing in corporate, securities, and antitrust class actions. Established over 85 years ago by Abraham L. Pomerantz, the firm has since recovered billions in damages for class members.

This situation underscores the crucial nature of transparency and ethical governance in financial enterprises. As ongoing investigations continue, shareholders are pressingly encouraged to reach out for more information about the class action filings and their rights regarding this lawsuit.

In an environment where trust in financial institutions is paramount, this case serves as a reminder of the need for accountability from corporate executives, ensuring that investors can engage with their investments securely.