Shareholder Investigation of Eagle Bancorp, Inc.

Eagle Bancorp Inc. (EGBN) Accused of Misleading Investors

According to the complaint against the company for alleged violations of the Securities Exchange Act of 1934 between March 2, 2015 and July 17, 2019, in its 2016 Form 10-K, Eagle Bancorp Inc. (EGBN) acknowledged deficiencies in its procedures and internal control over financial reporting, but touted a remediation plan to address the issue. Then, in December 2017, Aurelius Value reported allegations that EagleBank executives offered bank loans in exchange for cheap valuations for other personal investments and “treat Eagle as their own private piggy bank.” Eagle Bancorp rejected the assertions and recovered from a brief stock price drop, continuing to trade its stock at inflated prices. In its following Form 10-Ks, Eagle Bancorp touted that its controls over financial reporting remained effective and that any insider related party loans or transactions were made “in the ordinary course of business…as those prevailing at the time for comparable transactions with outsiders.” These statements proved to be materially false and misleading in July 2019, when Eagle Bancorp revealed ongoing internal and government investigations into its disclosure of related party transactions and its relationship with a local public official. On this news, Eagle Bancorp’s stock fell $14.30, or 26.75%, to close at $39.15.

Eagle Bancorp Inc. (EGBN) Shareholders Have Legal Options

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