A securities class action has been filed in the USDC – S.D.CA. against PacWest Bancorp (PACW) (“PacWest” or the “Company”) on behalf of a class consisting of all persons and entities that purchased or otherwise acquired PacWest securities between February 28, 2022 through May 3, 2023, both dates inclusive (the “Class Period”).
PacWest operates as a holding company for its wholly-owned subsidiary, Pacific Western Bank (“PWB”), a regional bank based in Los Angeles, California. To support its operations, the Company depends primarily on deposits and external financing sources. Accordingly, PacWest purports to offer “traditional deposit products to businesses and other customers with a variety of rates and terms, including demand, money market, and time deposits” to small, middle-market, and venture-backed businesses.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that:
- PacWest had understated the impact of interest rate hikes on PWB, a smaller bank with excessive concentration in specific industries;
- accordingly, the Company had overstated the stability and/or sustainability of its deposit base;
- as a result, PacWest was exceptionally vulnerable to excessive deposit flows and/or a liquidity crisis; and
- as a result, Defendants’ public statements were materially false and/or misleading at all relevant times, thereby harming investors.
If you purchased PacWest securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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