NEW YORK, July 18, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court, District of Delaware on behalf of all persons who purchased or otherwise acquired the securities of The Bancorp, Inc. ("The Bancorp" or the "Company") (Nasdaq:TBBK) during the period between April 24, 2013 and June 10, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding (i) the Company had under-reserved for loan losses due to adverse loans; and (ii) the Company's operations and credit practices were in violation of the Bank Secrecy Act ("BSA"). As a result of the above, the Complaint alleges the Company's financial statements were materially false and misleading at all relevant times. On April 23, 2014, the Company announced financial results for the first quarter of 2014, reporting that net income for the period decreased to $298,000, or fully diluted earnings per share of $.01, compared to net income of $7.4 million or $.20 per diluted share for the comparable period in 2013. According to the Company's Chief Executive Officer, the quarter was significantly impacted by an additional loan loss provision of $11.8 million principally related to "newly identified adversely classified loans".
On this news, the Company's shares fell $2.76, or over 15%, to close at $15.84 on April 24, 2014, on unusually heavy trading volume.
On June 10, 2014, the Company filed a Form 8-K with the SEC, announcing that it had entered into a Stipulation and Consent to the Issuance of a Consent Order with the FDIC. The Order became effective on June 5, 2014, and requires the bank to correct the weaknesses in its Bank Secrecy Act Compliance Program. On this news, shares of the Company fell $4.66, or over 28%, on extremely heavy volume, to close at $11.54 on June 11, 2014.
If you wish to serve as lead plaintiff, you must move the Court no later than September 16, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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