Pomerantz Law Firm Alerts Investors on Class Action Lawsuit Against The Bancorp, Inc.
In a significant development for shareholders of The Bancorp, Inc., the Pomerantz Law Firm has notified investors about a class action lawsuit that has recently been initiated against the company (NASDAQ: TBBK). This action is particularly relevant for individuals who have incurred losses in their investments in Bancorp. The firm urges affected investors to reach out for guidance on how to proceed in light of the claims being raised in the lawsuit.
The class action centers on allegations that The Bancorp and certain executives engaged in securities fraud and other illegal business activities. Investors who have purchased or acquired Bancorp securities during the designated Class Period are now presented with an opportunity to seek the status of Lead Plaintiff in the case. Those considering this step need to file their applications by May 16, 2025. It is recommended that interested parties communicate directly with the firm, supplying their contact details and information on their share purchases for proper registration.
This action comes on the heels of a critical report published by Culper Research, claiming that The Bancorp severely misrepresented the risks associated with its real estate bridge loans (REBLs). The report highlighted specific deficiencies in the company’s loan portfolio, suggesting it was fraught with inadequately vetted borrowers who were enticed by unrealistic promises of wealth through passive income ventures. Serious concerns were raised about the condition of many properties within their loan book, many of which faced significant vacancy and condemnation issues. The findings indicated that the firm’s assurances of low risk were misleading and that the reality painted a much graver picture, revealing substantial risks of default and potential losses.
Subsequent to the publication of this report on March 21, 2024, The Bancorp experienced a notable decline in its stock price, which fell by over 10% in a single trading session, a move that indicated investor reactions to the troubling findings.
Later, on October 24, 2024, The Bancorp disclosed its third quarter financial results, which included a net income report of $51.5 million. However, the report also indicated that a new current expected credit losses (CECL) methodology significantly impacted their results and attributed a substantial after-tax reduction in net income to problems associated with their accounting for REBLs. After this announcement, shares plummeted nearly 15%, further indicating market skepticism regarding the firm’s financial soundness.
More red flags surfaced on March 4, 2025, when The Bancorp reported that its financial statements for the previous fiscal years were unreliable and indicated failures by auditors to provide necessary approvals for those years’ reports. This bombshell not only highlighted weaknesses in the company's financial disclosure practices but also resulted in a drop in stock prices again, confirming investors’ growing concern.
Pomerantz LLP boasts a long-standing reputation as a leading law firm in the realm of corporate securities and class action litigation. With its foundation rooted in the pioneering efforts of Abraham L. Pomerantz—widely regarded as a trailblazer in this field—the firm has recovered considerable damages for class action victims over the years. It continues to spearhead efforts aimed at combating securities fraud and breaches of fiduciary duty.
For those affected by these recent developments, the potential for recourse through participation in the class action lawsuit is crucial. Details about the nature of the claims and information on how to participate are readily available through Pomerantz LLP’s communications. Interested investors should act promptly, especially considering the critical deadlines imposed by the court regarding the appointment of a Lead Plaintiff.
The class action centers on allegations that The Bancorp and certain executives engaged in securities fraud and other illegal business activities. Investors who have purchased or acquired Bancorp securities during the designated Class Period are now presented with an opportunity to seek the status of Lead Plaintiff in the case. Those considering this step need to file their applications by May 16, 2025. It is recommended that interested parties communicate directly with the firm, supplying their contact details and information on their share purchases for proper registration.
This action comes on the heels of a critical report published by Culper Research, claiming that The Bancorp severely misrepresented the risks associated with its real estate bridge loans (REBLs). The report highlighted specific deficiencies in the company’s loan portfolio, suggesting it was fraught with inadequately vetted borrowers who were enticed by unrealistic promises of wealth through passive income ventures. Serious concerns were raised about the condition of many properties within their loan book, many of which faced significant vacancy and condemnation issues. The findings indicated that the firm’s assurances of low risk were misleading and that the reality painted a much graver picture, revealing substantial risks of default and potential losses.
Subsequent to the publication of this report on March 21, 2024, The Bancorp experienced a notable decline in its stock price, which fell by over 10% in a single trading session, a move that indicated investor reactions to the troubling findings.
Later, on October 24, 2024, The Bancorp disclosed its third quarter financial results, which included a net income report of $51.5 million. However, the report also indicated that a new current expected credit losses (CECL) methodology significantly impacted their results and attributed a substantial after-tax reduction in net income to problems associated with their accounting for REBLs. After this announcement, shares plummeted nearly 15%, further indicating market skepticism regarding the firm’s financial soundness.
More red flags surfaced on March 4, 2025, when The Bancorp reported that its financial statements for the previous fiscal years were unreliable and indicated failures by auditors to provide necessary approvals for those years’ reports. This bombshell not only highlighted weaknesses in the company's financial disclosure practices but also resulted in a drop in stock prices again, confirming investors’ growing concern.
Pomerantz LLP boasts a long-standing reputation as a leading law firm in the realm of corporate securities and class action litigation. With its foundation rooted in the pioneering efforts of Abraham L. Pomerantz—widely regarded as a trailblazer in this field—the firm has recovered considerable damages for class action victims over the years. It continues to spearhead efforts aimed at combating securities fraud and breaches of fiduciary duty.
For those affected by these recent developments, the potential for recourse through participation in the class action lawsuit is crucial. Details about the nature of the claims and information on how to participate are readily available through Pomerantz LLP’s communications. Interested investors should act promptly, especially considering the critical deadlines imposed by the court regarding the appointment of a Lead Plaintiff.
Topics Financial Services & Investing）
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