NEW YORK - March 29, 2025 (NEWMEDIAWIRE) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against The Bancorp, Inc. (“Bancorp” or the “Company”) (NASDAQ: TBBK) on behalf of investors that purchased or otherwise acquired Bancorp securities between January 25, 2024 and March 4, 2025 (the “Class Period”).
If you are an investor in Bancorp and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than May 16, 2025 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.
The complaint alleges, among other things that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that (1) that Bancorp had underrepresented the significant risk of default or loss on its commercial real estate bridge loans, or “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 its financial statements had not been approved by its independent auditor; and (5) that, as a result of the foregoing, the Company’s financial statements could not be relied upon.
According to the complaint, the truth began to emerge on March 21, 2024 when Culper Research issued a report alleging that the company had under represented significant risk of default or loss on certain REBL loans. On March 21, 2024, Bancorp stock fell $3.63 per share, over 10%, to close at $32.12 per share.
Further, according to the complaint, the truth continued to emerge on October 24, 2024, after the markets closed, when Bancorp announced its third quarter 2024 financial results. The Company reported net income of $51.5 million in net income and attributed the results to “a new CECL [current expected credit losses methodology] factor” to the Company’s analysis of REBL loans. The Company also reported that the results reflected “prior period interest income reversals on real estate bridge loans transferred to nonaccrual or modified” which “resulted in an after-tax reduction in net income of $1.2 million.” Following this news, the price of Bancorp stock fell $7.95, over 14%, to close at $47.01 per share on October 5, 2025.
Then, on March 4, 2025, after the market closed, Bancorp disclosed that it “inappropriately filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “Annual Report”).” Additionally, the Company disclosed that both its current and former independent public accounting firms did not provide final approval to include their respective audit opinions and that the previously issued financial statements for fiscal years 2022 through 2024 should no longer be relied upon. Following this news, the price of Bancorp stock fell $2.35 per share, or 4.4%, to close at $51.24 per share on March 5, 2025.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.
https://www.kaplanfox.com/case/the-bancorp-inc/
