SAN FRANCISCO, Aug. 22, 2014 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a top-tier investor-rights law firm, advises investors of the Sept. 16, 2014, lead plaintiff deadline in the securities fraud class action against The Bancorp, Inc. (Nasdaq:TBBK) ("Bancorp" or "the Company"). Investors who purchased Bancorp stock between April 24, 2013 and June 10, 2014 (the "Class Period") should contact Hagens Berman Partner Reed Kathrein, who is leading the firm's investigation, by calling (510) 725-3000, emailing TBBK@hbsslaw.com or visiting http://hb-securities.com/investigations/TBBK.
The complaint, filed in the Delaware District Court on July 18, 2014, and docketed as 1:14-CV-00952, alleges that Bancorp made false and misleading statements and failed to disclose several material facts that ultimately caused their share price to tumble. First, the Company did not have enough reserves to cover loan-losses from adverse loans. Additionally, the Company failed to inform their investors that the FDIC was investigating their operations and credit practices for violations of the Bank Secrecy Act ("BSA"). On April 23, 2014, after the market close, Bancorp announced financial results for the first quarter of 2014, reporting that net income for the period decreased to $298,000, compared to net income of $7.4 million for the comparable period in 2013. According to Bancorp's CEO, the quarter was significantly impacted by an additional loan loss provision of $11.8 million, principally related to "newly identified adversely classified loans." Subsequently, Bancorp shares fell $2.76, or over 15%, to close at $15.84 on April 24, 2014, on unusually heavy trading volume.
"It is hard to believe that Bancorp was unaware of an FDIC investigation into their BSA practices – this information is critical to investors and should have been disclosed in previous filings," said Mr. Kathrein. "Furthermore, holding over $10 million in adverse loans does not come out of the blue. We are committed to learning what the Company knew about these problems, and why they chose to hide this information from their investors."
If you suffered a loss from your investment in Bancorp securities purchased on or after April 24, 2013 and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hbsslaw.com. Read the firm's Securities Newsletter at http://www.hb-securities.com/newsletter. The firm's blog is located at www.meaningfuldisclosure.com.
Reed Kathrein, 510-725-3000
Hagens Berman Sobol Shapiro LLP
Berkeley, California, UNITED STATES
Reed Kathrein, 510-725-3000
Hagens Berman Sobol Shapiro LLP Logo