Bank OZK (OZK) Accused of Failing to Manage Its Credit Risk
According to the complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 19, 2016 and October 18, 2018, Bank OZK (OZK) informed investors that it attempted to minimize its credit risk through prudent loan and lease underwriting procedures. However, because Bank OZK did not have adequate internal controls to assess credit risk, certain of its loans posed an increased risk of loss and certain substandard loans were likely to lead to charge-offs. On October 18, 2018, Bank OZK reported that it had incurred charge-offs of $45.5 million on two Real Estate Specialties Group credits, which had previously been classified as substandard. On this news, Bank OZK’s stock price dropped more than 26% to close at $25.52 per share on October 19, 2018, and have yet to recover their value.
Bank OZK (OZK) Shareholders Have Legal Options
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