SAN FRANCISCO, June 04, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Axos Financial, Inc. (NYSE: AX) investors who suffered substantial losses to submit your losses now.
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Axos Financial, Inc. (AX) Investigation:
Activist short seller Hindenburg Research has taken aim at Axos Financial (NYSE: AX), alleging the San Diego-based regional bank has concealed known risks about its lending practices and the health of its loan portfolio.
Known for its investigative reports uncovering corporate fraud and malfeasance, Hindenburg released a detailed analysis contending that Axos has been aggressively increasing its exposure to commercial real estate (CRE) loans, a sector that has been struggling since the COVID-19 pandemic. While many banks have reduced their CRE exposure, Axos has doubled down, with CRE loans now making up over half of its total loan portfolio. This flies in the face of industry trends, with a 2023 Moody's study finding that regional banks' average exposure to CRE is only 16.5.
Hindenburg’s report also raises concerns about Axos’ underwriting standards. According to interviews with former employees, the bank may have been willing to lend to borrowers who were rejected by other banks, including those with criminal histories and troubled finances. These lax standards could lead to a significant number of defaults down the line.
Furthermore, the report highlights potential issues with Axos’ accounting practices. Axos’ strong credit metrics may not be an accurate reflection of reality. Loan-to-value ratios appear lower than industry averages, and non-performing loan rates seem suspiciously stable. The report suggests that Axos may be manipulating these figures to present a more optimistic picture to investors.
“We’re investigating whether Axos may have misled investors about its loan portfolio,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Axos Financial and have substantial losses submit your losses now »
If you’d like more information about the Axos Financial investigation, read more »
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. 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
