HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages TBBK Investors Who Suffered Substantial Losses to Contact Firmās Attorneys Investigating Possible Securities Law Violations
SAN FRANCISCO, April 10, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges The Bancorp, Inc. ( TBBK) investors who suffered substantial losses to submit your losses now.
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The Bancorp, Inc. ( TBBK) Investigation:
On Mar. 21, 2024, The Bancorp shares sharply declined after activist short seller Culper Research took aim at the bank holding company, alleging that TBBK has misrepresented the quality of its real estate bridge loan (āREBLā) portfolio and contending that TBBKās related loss reserves are woefully inadequate.
Culperās detailed allegations have led prominent investorsā rights law firm, Hagens Berman, to open an investigation into possible securities law violations.
The report, entitled āThe Bancorp Inc. (NASDAQ TBBK): Bridge to Nowhere,ā is based on Culperās loan-by-loan analysis, visits to 21 different TBBK-funded properties in the past 2 weeks, conversations with former TBBK employees including a REBL underwriter, and conversations with several TBBK borrowers/syndicators.
As but one example, Culper points out that even though an unnamed borrower on a $39.4 million REBL loan collateralized by an apartment complex in Texas had not made interest-only payments for the past 3 months, TBBK nonetheless has made zero reserves against this loan. Culper observed that the Texas complex is only 47% occupied, rendering agency refinancing a non-starter.
Culper further states that āTBBKās book also appears rife with unsophisticated syndicated borrowers[]ā with āāget rich quick dreamsā who believed that they could easily rehab units, fill them with tenants, increase rents, and cash out for quick āpassiveā returns.ā But, the analyst continues, āfor these properties, none of these things have happened: costs have skyrocketed, vacancies remain high, rents have remained relatively stagnant, and interest rates have more than doubled.ā In Culperās view āTBBKās $4.7 million in reserves, at just 0.24% of its REBL book, are a total farce.ā
In addition, Culper said ā[w]e also spoke with a former TBBK REBL underwriter who told us that they might expect TBBKās losses to be anywhere from 10x to 15x higher than the Companyās actual reserves[.]ā
In response, the price of TBBK shares fell $3.63, or down about 10%, on Mar. 21, 2024.
āWeāre investigating whether TBBK may have misrepresented or concealed known risks in its real estate bridge loan portfolio,ā said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in TBBK and have substantial losses, or have knowledge that may assist the firmās investigation, submit your losses now Ā»
If youād like more information and answers to frequently asked questions about the TBBK investigation, read more Ā»
Whistleblowers: Persons with non-public information regarding TBBK 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 [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffsā rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895