Bancorp faces class action lawsuit for misleading investors

In the United States, a securities class action lawsuit has been initiated against The Bancorp, Inc., a financial institution listed on NASDAQ under the ticker symbol TBBK. This legal action concerns significant allegations from investors who purchased or acquired Bancorp securities from January 25, 2024, to March 4, 2025. The law firm Kessler Topaz Meltzer & Check, LLP, representing affected investors, has stated that the defendants made misleading statements throughout this class period and failed to disclose critical financial issues that could affect the company's stability and reliability. Specifically, the complaint asserts that Bancorp had significantly downplayed the risks associated with its portfolio of real estate bridge loans. It alleged that the company's methodology for expected credit losses was inadequate, leading to a reasonable likelihood that Bancorp would need to increase its provision for credit losses. Furthermore, it highlighted that the internal controls over financial reporting at Bancorp were materially weak, raising serious concerns regarding the integrity of the financial statements that had not been approved by its independent auditor. As a result of these purported shortcomings, the investor class was misled about Bancorp's operational prospects, leading to potential financial losses for shareholders who believed the positive statements made by the company were credible. The lead plaintiff deadline for this lawsuit has been set for May 16, 2025, giving affected investors the opportunity to become involved in directing the litigation. Those who wish to represent the class must act by this date, seeking an appointment as a lead plaintiff through legal representation. Kessler Topaz Meltzer & Check, LLP encourages Bancorp investors who have incurred significant financial losses due to these alleged fraudulent activities to reach out for more information. The firm aims to protect investors from misconduct and ensure accountability among corporate entities, highlighting the importance of accurate and transparent financial communication from public companies. Additionally, the firm has noted that participation as a lead plaintiff does not impact an investor's ability to claim any potential recovery from the lawsuit.