1. Pomerantz LLP investigates claims of securities fraud against Live Oak Bancshares. 2. Live Oak will amend 2024 Annual Report due to misclassified cash flows. 3. A material weakness in financial reporting controls was identified by Live Oak. 4. The company’s previous financial statements should not be relied upon. 5. Live Oak's stock fell 2.49% following disclosure on November 13, 2025.
FAQ
Why Bearish?
The disclosure of financial misstatements and fraud investigation directly undermines investor confidence, reminiscent of historical examples such as Enron's scandal, where resulting investigations led to significant stock declines.
How important is it?
Securities fraud investigations often lead to stock volatility, and the significant restatements indicate possible deeper issues, impacting future investor strategies and perceptions.
Why Short Term?
Immediate reactions to financial misreporting typically manifest quickly, as seen in Live Oak's recent stock price drop.
Investor Alert: Pomerantz Law Firm Probes Claims Against Live Oak Bancshares, Inc. (LOB)
NEW YORK, Dec. 30, 2025 (GLOBE NEWSWIRE) — Pomerantz LLP has initiated an investigation into potential claims on behalf of investors in Live Oak Bancshares, Inc. (NYSE: LOB). This investigation seeks to determine whether Live Oak and certain company executives have engaged in securities fraud or other illegal business activities. Investors are encouraged to reach out to Danielle Peyton at newaction@pomlaw.com or by calling 646-581-9980, ext. 7980.
Background of the Investigation
On November 12, 2025, Live Oak Bancshares disclosed via a filing with the U.S. Securities and Exchange Commission that it would amend its 2024 Annual Report on Form 10-K and the Quarterly Reports on Form 10-Q for the periods ending March 31, 2025, and June 30, 2025. The amendments are necessary to restate the Consolidated Financial Statements for each of the affected periods, particularly regarding the Statements of Cash Flows.
Live Oak acknowledged that “an error was identified in the classification of cash flows between operating and investing activities associated with the proceeds received from the sale of loan participations.” Additionally, the firm stated that the misclassification was significant enough that management concluded it to be material, indicating a substantial deficiency in the company’s internal controls over financial reporting.
The company warned that its previous financial disclosures during the impacted periods “should no longer be relied upon.”
Impact on Stock Performance
The revelation of these financial misstatements had a negative effect on Live Oak's stock performance. Following the announcement, shares of LOB decreased by $0.80 per share, marking a decline of 2.49% and closing at $31.29 per share on November 13, 2025.
Pomerantz LLP’s Expertise
Pomerantz LLP is well-regarded as a leader in corporate, securities, and antitrust class action litigation. Established by the late Abraham L. Pomerantz, known as the dean of the class action bar, the firm has a long-standing reputation for advocating on behalf of investors impacted by securities fraud and corporate misconduct.
With more than 85 years of experience, Pomerantz has successfully recovered substantial damages awards for class members. The firm operates internationally with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv.
Contact Information
For more information regarding the investigation into Live Oak Bancshares, Inc. and potential involvement in a class action, please contact:
- Danielle Peyton
- Pomerantz LLP
- Email: dpeyton@pomlaw.com
- Phone: 646-581-9980 ext. 7980