#USA #New York #Pomerantz LLP #TBBK #Bancorp

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

In a significant development for investors, Pomerantz LLP has filed a class action lawsuit against The Bancorp, Inc. (NASDAQ: TBBK). This lawsuit arises amid accusations regarding potential securities fraud and other unlawful business practices within the company. Investors who have sustained losses on their investments during the relevant class period are encouraged to engage with Pomerantz to explore their rights and options.

Key Details of the Lawsuit

Date of the Announcement: April 22, 2025
Contact for Inquiries: Danielle Peyton at [email protected] or 646-581-9980, toll-free, Ext. 7980.
Deadline for Class Participation: May 16, 2025

The core of the lawsuit pertains to the allegations that The Bancorp and certain managerial figures might have misrepresented critical information to investors, thus engaging in potential securities fraud. The implications of these actions could be far-reaching, affecting investor confidence and the company's financial standing.

Background Context

The financial landscape for Bancorp began to show troubling signs following a report released by Culper Research on March 21, 2024. This report claimed that the company had significantly downplayed the risks associated with its real estate bridge loans (REBLs). While Bancorp maintained that its loan book carried minimal risk, the report contradicted this assertion by highlighting the precarious conditions of numerous properties within their portfolio. Properties were described as "crumbling" and faced high vacancy rates leading to alarming condemnation issues. The report further indicated that the company's reserves for potential loan defaults were woefully insufficient, amounting to only $4.7 million—a mere 0.24% of the total REBL portfolio.

The immediate aftermath of this report was detrimental; Bancorp's stock price plummeted by 10.15%, closing at $32.12 per share.

Ongoing Financial Challenges

Fast forward to October 24, 2024, and Bancorp's financial woes continued as they announced their third-quarter earnings. The reported net income of $51.5 million was tarnished by revelations regarding increased provisions related to their REBLs, which significantly eroded previous profits. This led to a further dip in the stock price, falling by 14.47% to close at $47.01 per share the following day.

Most recently, on March 4, 2025, Bancorp disclosed that their financial statements for previous fiscal years (ending December 31, 2022, through 2024) should no longer be relied upon. The company's auditors did not approve their audit opinion, causing further concerns regarding the integrity of their financial disclosures. This revelation caused the stock to drop another 4.38%, closing at $51.25 on March 5, 2025.

Pomerantz Law Firm’s Role

Pomerantz LLP is well-regarded in the realm of corporate litigation, specializing in securities fraud and antitrust class actions. With more than 85 years of experience, they have a track record of fighting for the rights of investors who have been victimized by corporate misconduct. This latest class action against Bancorp underscores their commitment to holding corporations accountable.

Interested investors who incurred losses during the class period should seize the opportunity to potentially join the lawsuit and reclaim their investments. For further details or to review the formal complaint, visit Pomerantz Law Firm's website.

Conclusion

This development serves as a critical reminder of the inherent risks associated with investing and the importance of due diligence. The outcomes of this legal action could have significant implications not only for Bancorp but also for investors at large. As the situation unfolds, affected parties will need to stay engaged with Pomerantz to ensure their voices are heard during this pivotal moment.