Bancorp (TBBK) Lawsuit: Investors Have Until May 16 to Claim Lead Role in Securities Case– Hagens Berman

Core Viewpoint - A federal securities class action lawsuit is advancing against The Bancorp, Inc. due to allegations of misleading statements and inadequate disclosures regarding its commercial real estate bridge lending portfolio, leading to significant investor losses [1][2][3]. Group 1: Lawsuit Details - The lawsuit, titled Linden v. The Bancorp, Inc., accuses the company and its executives of violating the Securities Exchange Act of 1934 during the class period from January 25, 2024, to March 4, 2025 [2][3]. - Investors are urged to submit their claims for losses incurred during this period, as the lead plaintiff deadline is set for May 16, 2025 [3]. Group 2: Allegations Against The Bancorp - Plaintiffs allege that The Bancorp made false or misleading statements regarding the risks associated with its REBL portfolio, which is primarily backed by apartment buildings, and downplayed the likelihood of defaults and losses [3][4]. - The lawsuit claims that the company's internal controls over financial reporting had material weaknesses, and its financial statements for recent years lacked independent auditor approval, rendering them unreliable [4][10]. Group 3: Financial Reporting Issues - A report by Culper Research on March 21, 2024, criticized The Bancorp's loan book, describing it as filled with unsophisticated borrowers and properties with high vacancy rates, contradicting the company's public assurances of low risk [5]. - Following the report, The Bancorp's stock price fell over 10%, and a subsequent announcement on October 24, 2024, revealed a net income of $51.5 million, which was impacted by a new accounting methodology for credit losses that reduced net income by $1.5 million after taxes [6]. - In March 2025, The Bancorp disclosed that it had "inappropriately filed" its 2024 annual report, advising investors not to rely on financial statements from 2022 to 2024, leading to further declines in stock price [7]. Group 4: Amended Financial Statements - On April 7, 2025, The Bancorp filed an amended annual report, revising its financial statements and increasing the provision for credit losses on consumer fintech loans from $19.6 million to $30.7 million [8]. - The amended report also stated that internal control over financial reporting was not effective, contradicting earlier claims [9]. Group 5: Investigation and Whistleblower Information - Hagens Berman is investigating the claims against The Bancorp, raising concerns about the company's financial governance and obligations to shareholders [11]. - Whistleblowers with non-public information regarding The Bancorp are encouraged to assist in the investigation, with potential rewards under the SEC Whistleblower program [11].