News Summary
Investors in The Bancorp, Inc. are urged to act swiftly as a class action lawsuit for securities fraud looms. With a filing deadline of May 16, 2025, affected investors must submit lead plaintiff applications if they purchased Bancorp’s securities from January 25, 2024, to March 4, 2025. Concerns have emerged over the company’s financial statements, following delays in filing its 2024 annual report and allegations of misrepresentation regarding loan risks. Investors suffering losses over $100,000 are particularly encouraged to reach out for legal support.
Wilmington, DE – Investors in The Bancorp, Inc. are urged to take immediate action as a class action lawsuit for securities fraud is pending against the company, with a critical deadline set for May 16, 2025. Former Louisiana Attorney General Charles C. Foti, Jr. and Kahn Swick & Foti, LLC (KSF) have emphasized the necessity for investors who purchased Bancorp’s securities between January 25, 2024, and March 4, 2025, to file lead plaintiff applications before the deadline.
The class action lawsuit, designated as Linden v. The Bancorp, Inc., et al., No. 25-cv-326, is currently being handled in the United States District Court for the District of Delaware. Investors who have suffered losses exceeding $100,000 during the mentioned period are particularly encouraged to reach out and explore their eligibility to participate in the lawsuit.
Recent developments regarding The Bancorp have raised significant concerns among investors. On March 4, 2025, the company announced that it would not be able to file its 2024 annual report on time, prompting investors to question the reliability of its financial statements from 2022 through 2024. This revelation stemmed from ongoing auditor issues and the company’s acknowledgment that it was addressing necessary changes in its accounting procedures attached to consumer fintech loans. Additionally, the company’s evaluation of the impact of these non-reliance statements on its internal control over financial reporting has come under scrutiny.
Following the company’s disclosures, there was a notable downturn in Bancorp’s stock price, which fell by $2.34, constituting a 4.38% decrease, closing at $51.25 per share on March 5, 2025. Prior to this, additional reports had raised red flags regarding Bancorp’s real estate bridge loan portfolio, where past investigations suggested significant risks of default or losses. This contributed to earlier stock price declines.
On March 21, 2024, a report released by Culper Research claimed that Bancorp had misrepresented the risks associated with its loans, causing a dramatic drop of over 10% in the stock price, which fell from $36.04 to $32.12 per share. Furthermore, on October 24, 2024, Bancorp reported a net income of only $51.5 million, which was partly attributed to increased credit losses reflected in its financial reports. This announcement also resulted in a 14% decrease in the company’s stock price.
Additionally, allegations against The Bancorp involve not just the failure to disclose material information but also potential violations of federal securities laws by the company and some of its executives. Other leading law firms, including Bleichmar Fonti & Auld LLP and Pomerantz LLP, are joining the class action and pursuing their own claims against Bancorp. They emphasize that substantial financial misrepresentations and other unlawful practices have been made, prompting investors to consider their legal options to seek reimbursement for their losses.
Investors interested in participating in the class action lawsuit can obtain further information by contacting Kahn Swick & Foti, LLC at their toll-free number, 1-877-515-1850, to discuss potential legal strategies. It is crucial for affected parties to act promptly to ensure their rights and potential recovery regarding their investments in The Bancorp, Inc.
Deeper Dive: News & Info About This Topic
- Business Wire: Class Action Deadline Alert
- Globe Newswire: Investor Alert
- PR Newswire: Pomerantz Law Firm Reminder
- Globe Newswire: Faruqi & Faruqi Reminder
- PR Newswire: The Bancorp Securities Fraud Lawsuit
- Wikipedia: Securities Fraud
- Google Search: Bancorp Class Action
- Google Scholar: Bancorp Securities Fraud
- Encyclopedia Britannica: Securities Fraud
- Google News: Bancorp Inc
