{"id":93876,"date":"2025-05-11T15:32:10","date_gmt":"2025-05-11T15:32:10","guid":{"rendered":"https:\/\/pakistaninewspaperlist.com\/news\/faruqi-faruqi-reminds-the-bancorp-investors-of-the-pending-class-action-lawsuit-with-a-lead-plaintiff-deadline-of-may-16-2025-tbbk\/"},"modified":"2025-05-11T15:32:10","modified_gmt":"2025-05-11T15:32:10","slug":"faruqi-faruqi-reminds-the-bancorp-investors-of-the-pending-class-action-lawsuit-with-a-lead-plaintiff-deadline-of-may-16-2025-tbbk","status":"publish","type":"post","link":"https:\/\/pakistaninewspaperlist.com\/news\/faruqi-faruqi-reminds-the-bancorp-investors-of-the-pending-class-action-lawsuit-with-a-lead-plaintiff-deadline-of-may-16-2025-tbbk\/","title":{"rendered":"Faruqi & Faruqi Reminds The Bancorp Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of May 16, 2025 – TBBK"},"content":{"rendered":"
\n

Faruqi & Faruqi, LLP Securities Litigation Partner <\/strong>James (Josh) Wilson<\/strong><\/a> Encourages Investors Who Suffered Losses Exceeding $50,000 In The Bancorp To Contact Him Directly To Discuss Their Options<\/strong><\/p>\n

If you suffered losses exceeding $50,000 in <\/strong>The Bancorp<\/strong><\/a> between January 25, 2024 and March 4, 2025 <\/strong>and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly <\/strong>at 877-247-4292 <\/strong>or 212-983-9330 (Ext. 1310)<\/strong>.<\/p>\n

[You may also click here for additional information]<\/strong><\/a><\/p>\n

<\/p>\n

NEW YORK, May 11, 2025 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP<\/a>, a leading national securities law firm, is investigating potential claims against The Bancorp, Inc. (\u201cTBBK\u201d or the \u201cCompany\u201d) (NASDAQ: TBBK) and reminds investors of the May 16, 2025 deadline<\/strong> to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.<\/p>\n

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com<\/a>.<\/p>\n

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and\/or misleading statements and\/or failing to disclose that: (1) that Bancorp had underrepresented the significant risk of default or loss on its REBL loan portfolio; (2) that the Company\u2019s current expected credit loss methodology was insufficient to account for the provision and\/or allowance of credit losses; (3) that, as a result of the foregoing, the Company was reasonably likely to increase its provision for credit losses; (4) that there were material weakness in its internal control over financial reporting; (5) that its financial statements had not been approved by its independent auditor; (6) that, as a result of the foregoing, the Company\u2019s financial statements could not be relied upon; and (7) that, as a result of the foregoing, Defendants\u2019 positive statements about the Company\u2019s business, operations, and prospects were materially misleading and\/or lacked a reasonable basis.<\/p>\n

On March 21, 2024, at approximately 9:45 a.m. EST, Culper Research issued a report, alleging that the Company had underrepresented significant risks of default and\/or loss on certain real estate bridge loans (\u201cREBLs\u201d). The report alleged the Company\u2019s loan book is \u201crife with unsophisticated syndicated borrowers\u201d who were \u201ccoaxed by promises of generational wealth through passive income\u201d with \u201cget rich quick\u201d promises. The report alleged that the Company\u2019s REBL loan portfolio is filled with apartments which are \u201cquite literally, crumbling,\u201d with high vacancies and multiple condemnations. The report stated the Company \u201cblindly reassures investors that its book contains \u2018no substantial risk of default or loss,\u2019\u201d but, in reality, the Company\u2019s \u201cREBL portfolio faces meaningful risks and will result in meaningful losses.\u201d The report concluded that the Company\u2019s reserve of only \u201c$4.7 million in REBL loan allowances, representing a mere 0.24% of the total REBL book\u201d is \u201cshort by an order of magnitude or more.\u201d<\/p>\n

On this news, the Company\u2019s share price fell $3.63, or 10.15%, to close at $32.12 per share on March 21, 2024, on unusually heavy trading volume.<\/p>\n

Then, on October 24, 2024, after the market closed, the Company announced its third quarter 2024 financial results in a press release for the period ended September 30, 2024, reporting $51.5 million in net income. The Company attributed the results in part, to \u201ca new CECL [current expected credit losses methodology] factor\u201d to the Company\u2019s analysis of REBL loans classified as either special mention or substandard \u201cwhich increased the provision for credit losses and resulted in an after-tax reduction in net income of $1.5 million.\u201d The Company further explained its results also reflected \u201cprior period interest income reversals on real estate bridge loans transferred to nonaccrual or modified\u201d which \u201cresulted in an after-tax reduction in net income of $1.2 million.\u201d<\/p>\n

On this news, the Company\u2019s share price fell $7.95, or 14.47%, to close at $47.01 per share on October 25, 2024, on unusually heavy trading volume.<\/p>\n

Finally, on March 4, 2025, after the market closed, Bancorp disclosed that its \u201cfinancial statements for the fiscal years ended December 31, 2022 through 2024 as shown in the Annual Report should no longer be relied upon.\u201d The Company explained that its auditors for those years \u201cdid not provide approval to include [the] audit opinion . . . or [the] consent to the incorporation by reference of their audit report in certain registration statements.\u201d The Company further revealed it is \u201cworking expeditiously to perform and complete additional closing procedures related to accounting for consumer fintech loans in the allowance for credit losses\u201d in order to file an amended annual report. The Company also revealed it \u201cis evaluating the impact of this non-reliance on its conclusions regarding disclosure controls and procedures and internal control over financial reporting.\u201d As a result of the foregoing, the Company stated it would be unable to file timely its fiscal year 2024 annual report.<\/p>\n

On this news, the Company\u2019s share price fell $2.34, or 4.38%, to close at $51.25 per share on March 5, 2025, on unusually heavy trading volume.<\/p>\n

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.\u00a0\u00a0<\/p>\n

Faruqi & Faruqi, LLP also encourages anyone with information regarding The Bancorp\u2019s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.<\/p>\n

To learn more about the Bancorp<\/strong> class action, go to www.faruqilaw.com\/TBBK<\/strong><\/a> or call<\/strong> Faruqi & Faruqi partner Josh Wilson directly <\/strong>at 877-247-4292 <\/strong>or 212-983-9330 (Ext. 1310)<\/strong>.<\/p>\n

Follow us for updates on LinkedIn<\/a>, on X<\/a>, or on Facebook<\/a>.<\/p>\n

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.<\/p>\n

\"\"\n <\/div>\n","protected":false},"excerpt":{"rendered":"

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In The Bancorp To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $50,000 in The Bancorp between January 25, 2024 and March 4, 2025 and would like to discuss your legal rights, call Faruqi 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