Investors Warned of Class Action Against The Bancorp, Inc. Following Alarming Financial Reports

Investor Alert: Class Action Lawsuit Against The Bancorp, Inc.

Introduction
Recent developments from Pomerantz LLP have brought attention to a class action lawsuit filed against The Bancorp, Inc. (NASDAQ: TBBK). This legal action targets the company for alleged securities fraud and wrongful business practices. Investors who endured financial losses during the class period are encouraged to take action before deadlines approach.

Details of the Lawsuit
On April 28, 2025, Pomerantz LLP announced the initiation of a class action lawsuit against The Bancorp, Inc. for issues concerning deceptive practices that may have harmed investors financially. Individuals who purchased Bancorp securities during the specified class period should promptly reach out to the firm for potential legal representation. The deadline for those wishing to be appointed as lead plaintiffs is approaching fast; individuals must act by May 16, 2025. Interested parties can contact Danielle Peyton at Pomerantz LLP for further inquiries.

Background Risks Identified
The lawsuit stems from a concerning report released by Culper Research on March 21, 2024, which alleged that the company significantly understated risks associated with its real estate bridge loans (REBLs). According to the report, Bancorp's lending practices involved reckless assurance provided to investors, despite potential risks embedded within their loan portfolios.

The report highlighted a distressing state of Bancorp's assets, indicating that many loans were tied to properties suffering from severe physical deterioration, high vacancy rates, and conditions prompting condemnation. Investors were led to believe there was little expectation of loss or default, a narrative that contradicted the realities reflected in the company’s loan book.

Impact on Stock Price
The repercussions of this report were immediate, causing Bancorp's stock to plunge by $3.63 per share, marking a 10.15% decline, settling at $32.12. This sharp drop indicated increasing investor concern as the severity of the company's financial health became evident.

On October 24, 2024, following a market close announcement of its third-quarter results, Bancorp's stock faced additional declines. Acknowledging a new factor related to credit losses, the firm revealed a significant reduction in net income, further eroding investor confidence. The share price took another hit, decreasing $7.95 per share or 14.47%, closing at $47.01.

Financial Reporting Concerns
In a series of troubling disclosures, Bancorp later indicated on March 4, 2025, that its previous financial statements from fiscal years 2022 to 2024 were unreliable. This revelation sent shockwaves through the market as trust in the company's financial disclosures degraded. The firm announced its inability to file its annual reports on time, which contributed to another drop in share prices, this time by $2.34, closing at $51.25.

Conclusion
Pomerantz LLP stands as a leading authority in corporate and securities litigation, continuing a legacy established more than 85 years ago. The firm is encouraging all investors who have experienced losses related to The Bancorp, Inc. to evaluate their legal options. The time is crucial as the ensuing class action seeks to hold the company accountable for its allegedly deceptive practices and to recover losses sustained by investors. For those affected, it is important to act without delay, considering the upcoming deadlines associated with the class action process.

For more details about joining the class action, investors can visit Pomerantz Law Firm's website or reach out directly to their offices. Protect your investment rights and ensure you are informed about the potential recovery efforts underway.