Investigation Launched by Faruqi & Faruqi, LLP on The Bancorp Investors' Claims
Faruqi & Faruqi, LLP, a prominent securities law firm in the United States, has initiated an investigation into The Bancorp, Inc. (NASDAQ: TBBK) due to allegations surrounding false statements and financial mismanagement that may have affected shareholders' investments. The focus is on claims from investors who experienced losses exceeding $50,000 from January 25, 2024, to March 4, 2025, as the firm encourages them to approach the attorneys at Faruqi & Faruqi to discuss their legal options. The investigation is crucial as it comes with a set deadline on May 16, 2025, for those impacted to consider taking on the role of lead plaintiff in a class action suit against the firm.
According to the complaint, The Bancorp has allegedly violated federal securities laws by failing to disclose significant risks associated with its real estate bridge loan (REBL) portfolio. The firm’s current expected credit loss methodology has been deemed insufficient, drawing attention to potential increases in provisions for credit losses due to various material weaknesses in their financial control systems. Furthermore, they're accused of making misleading statements regarding the health of the company and its risk exposure.
These allegations gained momentum following a sharp report released by Culper Research, triggering concerns about the inaccuracies in the company's public communications regarding its loan portfolio. Reports claimed that The Bancorp's loan book appears filled with poorly vetted borrowers, alongside properties in a deteriorating state with significant vacancies. This led to a swift drop in the company’s share prices, highlighting a lack of confidence in their financial strategies and disclosure practices.
On March 21, 2024, after the report was issued, The Bancorp saw a notable decline in its share price, further exacerbated by the announcement of its third-quarter financial results on October 24, 2024. These results indicated a net income of $51.5 million, but were influenced by changes in accounting methodologies that might drive future losses. Investors were shocked to discover that the company had to retract earlier financial statements due to the absence of approval from independent auditors, prompting the firm to acknowledge material weaknesses in their internal controls.
As of March 4, 2025, The Bancorp informed its investors about the unreliability of its financial statements from 2022 through 2024. The announcement indicated the need for additional procedures to rectify current accounting disclosures and to assess the impact of these discrepancies on their operations and financial reportings. Subsequently, these developments led to another drop in share prices, reflecting the market's diminishing trust in the company.
Faruqi & Faruqi encourages potential class members and anyone with relevant information regarding The Bancorp's actions to come forward. They also underscore that being a member of a class action suit doesn’t affect any possible recovery for individuals, irrespective of their choice to serve as lead plaintiff in the case.
As the situation unfolds, investors are advised to stay updated on developments surrounding this investigation, recognizing the potential implications it may have both legally and financially.
More information can be found on the official website of Faruqi & Faruqi, or by directly contacting partner Josh Wilson for guidance related to this case. With a history of recovering substantial sums for investors, the firm stands as a beacon for those seeking justice in this tumultuous financial landscape.
According to the complaint, The Bancorp has allegedly violated federal securities laws by failing to disclose significant risks associated with its real estate bridge loan (REBL) portfolio. The firm’s current expected credit loss methodology has been deemed insufficient, drawing attention to potential increases in provisions for credit losses due to various material weaknesses in their financial control systems. Furthermore, they're accused of making misleading statements regarding the health of the company and its risk exposure.
These allegations gained momentum following a sharp report released by Culper Research, triggering concerns about the inaccuracies in the company's public communications regarding its loan portfolio. Reports claimed that The Bancorp's loan book appears filled with poorly vetted borrowers, alongside properties in a deteriorating state with significant vacancies. This led to a swift drop in the company’s share prices, highlighting a lack of confidence in their financial strategies and disclosure practices.
On March 21, 2024, after the report was issued, The Bancorp saw a notable decline in its share price, further exacerbated by the announcement of its third-quarter financial results on October 24, 2024. These results indicated a net income of $51.5 million, but were influenced by changes in accounting methodologies that might drive future losses. Investors were shocked to discover that the company had to retract earlier financial statements due to the absence of approval from independent auditors, prompting the firm to acknowledge material weaknesses in their internal controls.
As of March 4, 2025, The Bancorp informed its investors about the unreliability of its financial statements from 2022 through 2024. The announcement indicated the need for additional procedures to rectify current accounting disclosures and to assess the impact of these discrepancies on their operations and financial reportings. Subsequently, these developments led to another drop in share prices, reflecting the market's diminishing trust in the company.
Faruqi & Faruqi encourages potential class members and anyone with relevant information regarding The Bancorp's actions to come forward. They also underscore that being a member of a class action suit doesn’t affect any possible recovery for individuals, irrespective of their choice to serve as lead plaintiff in the case.
As the situation unfolds, investors are advised to stay updated on developments surrounding this investigation, recognizing the potential implications it may have both legally and financially.
More information can be found on the official website of Faruqi & Faruqi, or by directly contacting partner Josh Wilson for guidance related to this case. With a history of recovering substantial sums for investors, the firm stands as a beacon for those seeking justice in this tumultuous financial landscape.
Topics Financial Services & Investing）
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