NEW YORK, April 13, 2025 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against The Bancorp, Inc. (NASDAQ: TBBK) and certain of the Company’s senior executives for potential violations of the federal securities laws.
If you invested in Bancorp, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/the-bancorp-inc.
Investors have until May 16, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Bancorp stock. The case is pending in the U.S. District Court for the District of Delaware and is captioned Linden v. The Bancorp, Inc., et al., No. 25-cv-00326.
Why was Bancorp Sued for Securities Fraud?
Bancorp is a financial holding company that engages in institutional banking, commercial real estate bridge lending, small business lending and commercial fleet leasing. Its commercial real estate bridge loans (“REBLs”) are primarily collateralized by apartment buildings.
The complaint alleges that Bancorp misrepresented the significant risk of default or loss on its REBL loan portfolio and that its credit loss methodology was insufficient to account for the allowance of credit losses. As alleged, Bancorp also misrepresented the effectiveness of its internal controls over financial reporting as they contained at least one material weakness.
The Stock Declines as the Truth is Revealed
On March 21, 2024, Culper Research issued a report stating that Bancorp had misrepresented the significant risks of default and/or loss on certain Bancorp REBL loans. According to Culper Research, Bancorp’s REBL loan portfolio is filled with apartments which are “quite literally, crumbling,” with high vacancies and multiple condemnations and that its portfolio consisted of loans to unsophisticated borrowers who were coaxed by “get rich quick” promises. This news caused the price of Bancorp stock to decline over 10%, from $36.04 per share on March 21, 2024, to $32.12 per share on March 21, 2024.
On October 24, 2024, Bancorp announced its Q3 2024 results, disclosing net income of only $51.5 million due to “a new CECL [current expected credit losses methodology] factor” to REBL loans which increased credit losses and resulted in a post-tax reduction in net income of $1.5 million. This news caused the price of Bancorp stock to decline over 14%, from $54.96 per share on October 24, 2025, to $47.01 per share on October 25, 2025.
Finally, on March 4, 2025, Bancorp disclosed that it had “inappropriately filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2024” and informed investors that its financial statements from 2022 to 2024 as reflected in that Annual Report should no longer be relied upon. Bancorp revealed that its auditors did not approve the use of its audit opinions for those years. This news caused the price of Bancorp stock to decline 4.4%, from $53.59 per share on March 4, 2025, to $51.25 per share on March 5, 2025.
Click here if you suffered losses: https://www.bfalaw.com/cases-investigations/the-bancorp-inc.
What Can You Do?
If you invested in Bancorp you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/the-bancorp-inc
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/the-bancorp-inc
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