Metro Bank PLC (MBNKF) Accused of Misleading Investors

According to the complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between March 6, 2018 and May 1, 2019, Metro Bank PLC (MBNKF) falsely represented the effectiveness of its risk management policies and control since 2018. In January 2019, Metro Bank disclosed that it had misclassified the risk terms of hundreds of millions of pounds of loans. On this news, Metro Bank's stock fell nearly 35% to close at $18.80 per share on January 23, 2019. On January 31, 2019, the Financial Times revealed that the realization of the accounting errors was not found during Metro Bank's own audit, but was in response to a financial services regulatory body's concerns with its loans. In February 2019, Metro Bank revealed that the multiple regulatory bodies had initiated investigations into the situation. On this news, Metro Bank's shares fell over 22% to close at $13.25 per share on February 27, 2019. In May 2019, Metro Bank's 1Q presentation revealed reduced profits and a loss of a number of large customers due to the misclassification fiasco. On this news, Metro Bank's stock fell over 18% over the next two trading days to close at $8.50 per share on May 3, 2019, and has yet to recover.