NEW YORK, March 27, 2024 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of The Bancorp, Inc. (“TBBK” or the “Company”) (NASDAQ: TBBK). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether TBBK and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On March 21, 2024, TBBK shares sharply declined after activist short seller Culper Research (“Culper”) took aim at the bank holding company, alleging that TBBK has misrepresented the quality of its real estate bridge loan (“REBL”) portfolio and contending that TBBK’s related loss reserves are woefully inadequate. The report, entitled “The Bancorp Inc. (NASDAQ: TBBK) Bridge to Nowhere,” was based on Culper’s loan-by-loan analysis, visits to 21 different TBBK-funded properties in the prior 2 weeks, conversations with former TBBK employees including a REBL underwriter, and conversations with several TBBK borrowers/syndicators. Culper further stated that “TBBK’s book also appears rife with unsophisticated syndicated borrowers[]” with “‘get rich quick dreams’ who believed that they could easily rehab units, fill them with tenants, increase rents, and cash out for quick ‘passive’ returns.” But, the analyst continued, “for these properties, none of these things have happened: costs have skyrocketed, vacancies remain high, rents have remained relatively stagnant, and interest rates have more than doubled.” In Culper’s view “TBBK’s $4.7 million in reserves, at just 0.24% of its REBL book, are a total farce.”
On this news, TBBK’s stock price fell $3.63 per share, or 10.15%, to close at $32.12 per share on March 21, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE Pomerantz LLP