Customers Bancorp faces class action over serious AML compliance failures

In the United States, a class action lawsuit has been initiated against Customers Bancorp, Inc. (CUBI) on behalf of investors who acquired its securities between March 1, 2024, and August 8, 2024. The case raises serious allegations against the bank holding company regarding its failure to adequately disclose its anti-money laundering practices, thus exposing it to regulatory risks. On April 12, 2024, it was reported that the company's Chief Financial Officer had been terminated for cause, which had an immediate adverse effect on the stock's value, decreasing it by nearly 5% within days of the announcement. Further compounding troubles for the firm, on August 8, 2024, the Federal Reserve publicly identified significant deficiencies in Customers Bancorp's risk management practices tied to its compliance with laws pertaining to money laundering. This public criticism led to a sharp 15% drop in its stock price. The seriousness of these issues was underscored when the company entered into a consent order with the Commonwealth of Pennsylvania, admitting to unsafe banking practices related to its anti-money laundering measures. Investors are actively being encouraged to participate in the class action, with a deadline to apply as lead plaintiff set for January 31, 2025. Importantly, shareholders are informed they do not need to be active participants in the case to be eligible for any recovery if the case succeeds. The Robbins LLP law firm is leading the efforts in this litigation, highlighting their dedicated experience in shareholder rights since their establishment in 2002. They stress the importance of proper legal representation for investors, as many other firms issuing alerts lack the capabilities or experience to effectively litigate such class actions. Robbins LLP claims to have recovered over $1 billion for shareholders through various legal pursuits, establishing a strong profile in the realm of securities litigation.