SAN FRANCISCO, June 24, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Axos Financial, Inc. (NYSE: AX) investors who suffered substantial losses to submit your losses now.
Visit: www.hbsslaw.com/investor-fraud/ax
Contact the Firm Now: AX@hbsslaw.com | 844-916-0895
Axos Financial Inc. (AX) finds itself in the crosshairs of short seller Hindenburg Research, which alleges risky lending practices and potential misrepresentation of the bank’s loan portfolio.
Hindenburg, known for its forensic financial research and uncovering corporate frauds, published a scathing report on June 4, 2024 titled “Axos: Glaring Commercial Real Estate Loan Problems and Lax Underwriting Beneath This Priced-For-Perfection Bank.” The report highlights three main areas of concern:
- Aggressive CRE Exposure: Axos' commercial real estate (CRE) loans reportedly make up a significantly higher portion of its portfolio compared to regional bank averages. This concentration could expose Axos to greater risk if the CRE market weakens.
- Lax Underwriting Standards: Hindenburg raises questions about Axos' lending practices, suggesting they may have approved loans for borrowers denied credit by other institutions. This could lead to a rise in loan defaults.
- Accounting Opacity: Hindenburg casts doubt on the accuracy of Axos' reported credit metrics, suggesting they may be overly rosy. The report hints at potential manipulation to create a more attractive profile for investors.
Axos’ stock price took a hit following the release of the Hindenburg report.
Axos responded swiftly, filing an 8-K with the SEC on the same day. The filing rejects Hindenburg’s claims, calling the report "inaccurate" and "misleading." Axos contends that Hindenburg misrepresents loan details and fails to consider factors that strengthen their loan positions.
The short seller responded via X (formerly Twitter), calling Axos' rebuttal “red herrings” that fail to address core issues. Hindenburg maintains its short position on Axos stock.
Adding another layer to the situation, prominent shareholder rights law firm Hagens Berman has announced an investigation into whether Axos may have misled investors.
“We’re investigating whether Axos misrepresented its underwriting standards and downplayed risks present in 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
