Bancorp (TBBK) Lawsuit: Investors Have Until May 16 to Claim Lead Role in Securities Case – Hagens Berman

SAN FRANCISCO, May 12, 2025 (GLOBE NEWSWIRE) -- A federal securities class action lawsuit is moving forward against The Bancorp, Inc. (NASDAQ: TBBK), as investors who wish to seek appointment as lead plaintiff in the case must do so by May 16, 2025. The case, captioned Linden v. The Bancorp, Inc., No. 25-cv-00326 (D. Del.), accuses the company and several of its top executives of violating the Securities Exchange Act of 1934 during a period when investors purchased or acquired Bancorp securities between January 25, 2024, and March 4, 2025. Hagens Berman urges investors who purchased Bancorp shares and suffered substantial losses to submit your losses now. Class Period: Jan. 25, 2024 – Mar. 4, 2025Lead Plaintiff Deadline: May 16, 2025Visit: www.hbsslaw.com/investor-fraud/tbbk Contact the Firm Now: TBBK@hbsslaw.com | 844-916-0895 The Bancorp, Inc. (TBBK) Securities Class Action According to the complaint, investors allege that The Bancorp and its executives made false or misleading statements-or failed to disclose critical information-about the risks associated with its commercial real estate bridge lending (“REBL”) portfolio, which is largely backed by apartment buildings. The plaintiffs claim that the company downplayed the likelihood of defaults and losses on these loans, and that its methodology for estimating credit losses was inadequate. The lawsuit further contends that The Bancorp’s internal controls over financial reporting contained material weaknesses, and that its financial statements for recent years had not been approved by its independent auditor, rendering those statements unreliable. The complaint cites a March 21, 2024, report by Culper Research, which alleged that The Bancorp’s loan book was filled with “unsophisticated syndicated borrowers” lured by promises of “generational wealth through passive income.” The report described the REBL portfolio as containing properties that were “quite literally, crumbling,” with high vacancy rates and multiple condemnations. Despite public assurances from the company that its loan book faced “no substantial risk of default or loss,” the report warned that the portfolio was at significant risk and that the company’s reserves for potential losses were far too low. Following the release of the report, The Bancorp’s stock price fell more than 10%. Later, on October 24, 2024, The Bancorp reported third-quarter net income of $51.5 million, attributing part of the results to a new accounting methodology for credit losses on REBL loans. The company acknowledged that this change increased its provision for credit losses and reduced net income by $1.5 million after taxes. The stock price dropped more than 14% on the news. The situation worsened in early March 2025, when The Bancorp disclosed that it had “inappropriately filed” its 2024 annual report and that investors should no longer rely on its financial statements for 2022 through 2024. The company explained that its auditors had not approved the audit opinions for those years, nor had they consented to the use of their reports in certain regulatory filings. The stock price fell further following this announcement. Amended Filing Raises New Questions About Bancorp’s Financial Transparency On April 7, 2025, after the filing of the lawsuit, Bancorp filed its amended annual report on Form 10-K/A, revising its financial statements and disclosures filed a little over one month beforehand. Among other matters, the amended filing revealed that in contrast to its March 3, 2025 original annual report-which stated the provision for credit losses for consumer fintech loans was $19.6 million-the amended annual report now reports this provision should be $30.7 million. Additionally, while the original report claimed internal control over financial reporting was effective, the amended report states that it was not effective. The company further disclosed that neither its former auditor, Grant Thornton LLP, nor its current auditor, Crowe LLP, had provided final approval for the inclusion of their audit opinions in the report. Hagens Berman’s Investigation Securities class action firm Hagens Berman is investigating the alleged claims. “The magnitude of the restatement and the delay in auditor approval raise questions about Bancorp’s financial governance,” said Reed Kathrein, the Hagens Berman Partner leading the firm’s probe. “We intend to thoroughly investigate whether Bancorp failed to meet its obligations to shareholders.” If you invested in Bancorp and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now. If you’d like more information and answers to frequently asked questions about the Bancorp case and our investigation, read more. Whistleblowers: Persons with non-public information regarding Bancorp should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TBBK@hbsslaw.com. About Hagens BermanHagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895

Bancorp (TBBK) Lawsuit: Investors Have Until May 16 to Claim Lead Role in Securities Case – Hagens Berman

FAQ

Why Very Bearish?

How important is it?

Why Short Term?

Related Companies

Related News