The Bancorp(TBBK) Prnewswire·2025-03-28 15:06Core Viewpoint - The Bancorp, Inc. is facing a federal securities class action lawsuit due to allegations of misleading statements regarding its financial health and risk exposure, particularly related to its real estate bridge loan portfolio [2][3]. Group 1: Allegations and Financial Misrepresentation - The complaint alleges that The Bancorp and its executives violated federal securities laws by making false or misleading statements and failing to disclose significant risks associated with its REBL loan portfolio [3]. - Specific allegations include underrepresenting the risk of default on loans, insufficient credit loss provisions, material weaknesses in internal controls, and reliance on unapproved financial statements [3]. - A report from Culper Research claimed that the company's loan portfolio was filled with high-risk borrowers and properties, leading to significant potential losses [4]. Group 2: Financial Performance and Market Reaction - On October 24, 2024, The Bancorp reported a net income of 1.5 million after-tax reduction in net income [5]. - Following this announcement, the company's share price fell by 47.01 on October 25, 2024, amid heavy trading volume [5]. - On March 4, 2025, the company disclosed that its financial statements for fiscal years 2022 to 2024 should no longer be relied upon, leading to a further decline in share price by 51.25 on March 5, 2025 [6][8]. Group 3: Legal Proceedings and Investor Actions - Investors who suffered losses exceeding $50,000 between January 25, 2024, and March 4, 2025, are encouraged to contact the law firm Faruqi & Faruqi to discuss their legal options [1]. - The deadline to seek the role of lead plaintiff in the class action lawsuit is set for May 16, 2025 [2]. - The firm is also seeking information from whistleblowers, former employees, and shareholders regarding The Bancorp's conduct [10].