Attention The Bancorp, Inc. Investors: Bancorp Misled Investors According to a Recently Filed Class Action
Robbins LLP announces that an investor of The Bancorp, Inc. (NASDAQ: TBBK) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of Delaware. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between April 24, 2013 and June 10, 2014 (the “Class Period”). Bancorp operates as the financial holding company for The Bancorp Bank that provides commercial and retail banking products and services to small and mid-size businesses and their principals in Pennsylvania and New Jersey.
Bancorp Is Accused of Violations of the Bank Secrecy Act
According to the complaint, on April 24, 2014, shares of Bancorp dropped 15% to close at $15.84 on the announcement that net income for the first quarter of 2014 decreased to $298,000, on revenue of $53.6 million, compared to a net income of $7.4 million, on revenue of $44.5 million in the same period in the previous year. The decrease in net income is contributed to the loan loss provision of $11.8 million related to “newly identified adversely classified loans.”
The complaint further alleges that on June 10, 2014 the company filed a Form 8-K with the U.S. Securities and Exchange Commission, announcing that it had entered into a Stipulation and Consent to the Issuance of a Consent Order with the FDIC. The order requires Bancorp to correct weaknesses within in its Bank Secrecy Act Compliance Program. Upon this news, shares dropped over 28% to close at $11.54 on unusually high trading volume.
Bancorp Investors Are Encouraged to Contact Shareholder Rights Law Firm Robbins LLP
If you invested in Bancorp and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.