SAN FRANCISCO, June 20, 2023 (GLOBE NEWSWIRE) -- Hagens Berman announces that a class action lawsuit has been filed against First Republic Bank executives and the bank’s auditor, KPMG, LLP. The firm urges First Republic investors who suffered substantial losses to submit your losses now.
Expanded Class Period: Jan. 14, 2021 – Apr. 27, 2023
Lead Plaintiff Deadline: June 23, 2023
Visit: www.hbsslaw.com/cases/FRC
Contact An Attorney Now: FRC@hbsslaw.com
844-916-0895
Hagens Berman’s First Republic Bank (FRC) Securities Class Action:
The Complaint alleges that Defendants: (i) misrepresented the strength of the Company’s balance sheet and liquidity position, while also understating the significant pressure rising interest rates posed First Republic’s business model; (ii) misrepresented the strength of the Company’s ability to deliver consistent results across different interest rate environments, the diversity of its deposit base, and its ability to generate net interest income (“NII”) growth and maintain stable net interest margins (“NIM”).
On October 14, 2022, investors began to learn the truth about the risks the Company faced from the Federal Reserve’s increasing the federal funds rate when the Company announced disappointing Q3 2022 financial results, and reported that its NII growth slowed to 20.6% year-over-year (down from 24.1% year-over-year growth the prior quarter) and its NIM plummeted to 2.71% (down from 2.8% the prior quarter). Defendants attributed the NIM decrease to “average funding costs increasing more rapidly than the offsetting increase in the average yields on interest-earning assets.”
On January 13, 2023, First Republic announced its Q4 and FY 2022 financial results, including a Q4 decrease in NII, stalled NII growth at 4.9% year-over-year, and NIM of just 2.45%.
Then, on March 12, 2023, First Republic announced it obtained $10 billion of additional borrowing capacity from the Fed and JPMorgan Chase. S&P, Moody’s and Fitch downgraded their ratings of First Republic securities during the next few days.
On April 24, 2023, First Republic revealed that its total deposits declined 41% in Q1 2023. On April 28, 2023, media outlets reported that the FDIC was in talks with several banks for bids on First Republic should it go into receivership. Finally, on May 1, 2023, the Department of Financial Protection and Innovation announced that it had taken over First Republic and that FDIC officials had accepted JPMorgan’s bid to assume deposits and substantially all assets of First Republic.
We’re focused on investors’ losses and proving Defendants intentionally and falsely misled investors about First Republic being a safe and sound bank,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding First Republic should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FRC@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
