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Customers Bancorp, Inc. Securities Class Action - What You Need to Know

On January 9, 2025, Robbins LLP made a crucial announcement regarding a class action lawsuit against Customers Bancorp, Inc. (CUBI), drawing attention to significant issues surrounding the bank's conduct during the specified period. This class action, relevant for those who acquired CUBI securities between March 1, 2024, and August 8, 2024, is an opportunity for investors affected by potential misconduct to seek restitution.

Background of the Case

Customers Bancorp, recognized as a bank holding company, has recently come under scrutiny for its anti-money laundering (AML) practices. Plaintiffs allege that the company failed to disclose its inadequacies in compliance with relevant AML regulations. This oversight not only breaches legal obligations but also exposes the company to considerable regulatory risks.

Key events illuminated by the lawsuit include the firing of CUBI’s CFO on April 12, 2024, for violating internal policies. This revelation shocked investors, leading to a near 5% drop in stock prices shortly afterward. Yet, this was merely a precursor to more severe ramifications.

On August 8, 2024, the Federal Reserve publicly identified substantial deficiencies in the bank’s risk management practices, triggering an approximate 15% decline in CUBI's stock prices. This announcement revealed that Customers Bancorp was not compliant with applicable AML laws, raising alarms about the bank's operational integrity.

Furthermore, the bank disclosed the imposition of a consent order from the Commonwealth of Pennsylvania, citing dangerous banking procedures relating to AML compliance. Investors reacted sharply; this news saw the stock's value decline further, raising the stakes for investors who may have suffered losses as a result.

Your Rights as an Investor

Investors who believe themselves to be eligible are encouraged to consider participating in this class action. The deadline to apply to become a lead plaintiff, one who represents the interests of the broader group of affected shareholders, is January 31, 2025. This mechanism exists to ensure that various shareholders can coordinate their claims in a unified manner under the oversight of the court.

Even if one opts out from actively participating in the lawsuit, they can still remain a member of the class and may still be entitled to recover a portion of any settlements or judgments awarded.

About Robbins LLP

Since its establishment in 2002, Robbins LLP has firmly positioned itself as a leading advocate for shareholder rights, having recovered over $1 billion on behalf of its clients. Unlike some other law firms that may claim to assist in securities class actions without extensive experience, Robbins LLP actively litigates on behalf of shareholders. Their seasoned attorneys are committed to enhancing corporate governance and holding executive personnel accountable for corporate malfeasance.

Potential participants are reassured that representation in this case will operate on a contingency fee basis, meaning that no upfront fees or expenses are required from shareholders – payment is only collected if there is a successful recovery.

Keep Informed

To stay updated on this class action and other significant corporate governance issues, investors are encouraged to subscribe to alerts from Robbins LLP. The firm's dedication to shareholder rights signifies their commitment to transparency and advocacy within the financial markets.

As deadlines loom, it’s vital for investors in Customers Bancorp, Inc. to remain vigilant, knowledgeable, and prepared to take action. With the complexities of securities litigation, having the right support and information can make all the difference in navigating this turbulent landscape.