A securities class action has been filed in the USDC – DE. against The Bancorp, Inc. (TBBK) (“Bancorp” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Bancorp securities between January 25, 2024, and March 4, 2025, both dates inclusive (the “Class Period”).
Bancorp is a financial holding company that generates the majority of its revenue and income through its primary wholly owned subsidiary, The Bancorp Bank, National Association (the “Bank”). Bancorp engages in institutional banking, commercial real estate bridge lending, small business lending and commercial fleet leasing. The Company’s commercial real estate bridge loans (“REBLs”) are primarily collateralized by apartment buildings. In 2024, the Company also began making consumer fintech loans which consist of short-term extensions of credit including secured credit card loans, fixed term loans, payroll advances and others, made in conjunction with marketers and servicers.
The claim arises on March 4, 2025, after the market closed, when Bancorp disclosed that its “financial statements for the fiscal years ended December 31, 2022 through 2024 as shown in the Annual Report should no longer be relied upon.”
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:
(1) that Bancorp had underrepresented the significant risk of default or loss on its REBL loan portfolio;
(2) that the Company’s current expected credit loss methodology was insufficient to account for the provision and/or allowance of credit losses;
(3) that, as a result of the foregoing, the Company was reasonably likely to increase its provision for credit losses;
(4) that there were material weakness in its internal control over financial reporting;
(5) that its financial statements had not been approved by its independent auditor;
(6) that, as a result of the foregoing, the Company’s financial statements could not be relied upon; and
(7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.
On this news, the Company’s share price fell $2.34, or 4.38%, to close at $51.25 per share on March 5, 2025, on unusually heavy trading volume.
If you purchased Bancorp 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”.