#USA #New York #TBBK #Faruqi & Faruqi #The Bancorp

Investigating The Bancorp: A Call to Investors

As investor confidence shakes, the prominent securities law firm Faruqi & Faruqi, LLP has launched an inquiry into The Bancorp, Inc. (TBBK), highlighting serious securities law concerns affecting shareholders. The impending deadline for investors to join a federal class-action lawsuit looms on May 16, 2025. If you have incurred losses exceeding $50,000 between January 25, 2024, and March 4, 2025, now is the time to take action.

Understanding the Accusations

The legal investigation revolves around allegations that The Bancorp has seriously misrepresented crucial financial risks associated with its Real Estate Bridge Loan (REBL) portfolio. An alarming report released on March 21, 2024, by Culper Research suggested that the company was underestimating the potential for defaults in these loans, leading to unacceptable levels of risk being reported to investors.

The report accused The Bancorp of making overly optimistic statements about its financial metrics while ignoring significant underlying issues within its loan portfolio. As a result, shareholders were misled about the true state of the company’s finances.

The allegations specify that:
1. The Bancorp may have downplayed the potential for losses associated with its REBL loan portfolio, putting investors at unnecessary financial jeopardy.
2. The company's evaluation methods for credit losses used in financial assessments could significantly downplay future financial downturns.
3. There have been concerning weaknesses in the internal controls related to financial reporting, which raises questions about the reliability of their published financial statements.

Market Reactions and Shareholder Impact

The fallout from the disclosures has been swift and severe. Following the release of the damaging report, The Bancorp’s stock plummeted, with a staggering decrease of over 10% in just one day. The situation escalated further when, on October 24, 2024, the company revealed disappointing third-quarter results, which were impacted significantly by a new factor in their credit loss evaluation methodology.

Specifically, the reported net income of $51.5 million was overshadowed by losses attributed to revisions in accounting practices described in their press release. Following this announcement, shares once again slumped, reflecting mounting investor concerns.

Most recently, on March 4, 2025, The Bancorp issued a statement advising that its annual financial statements from 2022 to 2024 should no longer be trusted. This revealed a serious lack of auditors' approval, thereby prompting an immediate negative response from the market.

Call to Action for Investors

Now, as the May 16 deadline approaches, Faruqi & Faruqi is urging all affected investors to contact them. They encourage anyone who has information about The Bancorp's conduct to come forward, as it could aid in building a stronger case.

Prospective class members are informed that opting to serve as a lead plaintiff is not mandatory and that participation in these legal proceedings may happen without direct engagement in the plaintiff role. Class members can still benefit from any settlements reached through the litigation.

For investors looking to understand more about their rights and options, they can reach out to Faruqi & Faruqi directly at 877-247-4292 or 212-983-9330. More information on this case is also available on their website at www.faruqilaw.com/TBBK.

Conclusion

The time for The Bancorp’s investors to act is now. With active inquiries and a potential class action, stakeholders are urged to understand their rights and engage with knowledgeable legal counsel to safeguard their investments. Stay vigilant—investor rights are paramount, and the legal avenues available could yield favorable outcomes for those wronged in this unfolding situation.