Core Viewpoint - A lawsuit has been filed against The Bancorp, Inc. and its senior executives for potential violations of federal securities laws, specifically related to misrepresentations regarding the company's loan portfolio and internal controls [1][2][4]. Company Overview - The Bancorp, Inc. is a financial holding company involved in institutional banking, commercial real estate bridge lending, small business lending, and commercial fleet leasing, with a focus on loans collateralized by apartment buildings [3]. Allegations - The lawsuit alleges that Bancorp misrepresented the risks associated with its commercial real estate bridge loan (REBL) portfolio and that its credit loss methodology was inadequate [4]. - It is claimed that Bancorp's internal controls over financial reporting contained at least one material weakness [4]. Stock Performance and Impact - Following a report from Culper Research on March 21, 2024, which highlighted the risks of default in Bancorp's REBL loans, the stock price fell over 10%, from $36.04 to $32.12 [5]. - On October 24, 2024, Bancorp reported a net income of $51.5 million, which included a post-tax reduction of $1.5 million due to increased credit losses, leading to a 14% decline in stock price from $54.96 to $47.01 [6]. - On March 4, 2025, Bancorp disclosed issues with its Annual Report for the fiscal year ended December 31, 2024, causing a 4.4% drop in stock price from $53.59 to $51.25 [7].
TBBK INVESTOR ALERT: A Class Action was filed against The Bancorp, Inc. for Securities Fraud – Contact BFA Law before May 16 Deadline (NASDAQ:TBBK)