Lawsuit filed for Investors who lost money with shares of The Bancorp, Inc. (NASDAQ: TBBK)

An investor, who purchased shares of The Bancorp, Inc. (NASDAQ: TBBK), filed a lawsuit in the U.S. District Court for the District of Delaware over alleged violations of Federal Securities Laws by The Bancorp, Inc. in connection with certain allegedly false and misleading statements made between January 25, 2024 and March 4, 2025.

Investors who purchased shares of The Bancorp, Inc. (NASDAQ: TBBK) have certain options and for certain investors are short and strict deadlines running. Deadline: May 16, 2025. NASDAQ: TBBK investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Wilmington, DE based he Bancorp, Inc. operates as the financial holding company for The Bancorp Bank, National Association that provides banking products and services in the United States.

On March 21, 2024, Culper Research released a report alleging that The Bancorp, Inc. had downplayed risks of default and loss on certain real estate bridge loans ("REBLs"). The report claimed the Company's loan book was "rife with unsophisticated syndicated borrowers" lured by "get rich quick" promises and that the REBL portfolio was filled with deteriorating, high-vacancy apartments. The Culper Research report accused the Company of misleading investors by stating its portfolio had "no substantial risk," while actually facing "meaningful risks and losses." It concluded the Company's $4.7 million in REBL loan allowances was "short by an order of magnitude or more."

On October 24, 2024, after the market close, The Bancorp, Inc. announced its third quarter 2024 financial results in a press release. The Company reported $51.5 million in Q3 net income, partly due to a new CECL (current expected credit loss) methodology for REBL loans marked as special mention or substandard, increasing credit loss provisions and reducing after-tax net income by $1.5 million. It also cited prior period interest income reversals on nonaccrual or modified REBLs, further reducing after-tax net income by $1.2 million.

On January 30, 2025, The Bancorp, Inc. reported its fourth quarter and full year 2024 financial results and updated its 2025 guidance. The Bancorp, Inc. (NASDAQ: TBBK) reported that its annual Total Revenue rose from $466.14 million in 2023 to $522.72 million in 2024, and that its Net Income increased from $192.29 million in 2023 to $217.54 million in 2024.

On March 4, 2025, after market close, The Bancorp, Inc. disclosed that its financial statements for fiscal years 2022-2024 "should no longer be relied upon." It revealed that auditors had not approved their audit opinion or consented to its inclusion in certain filings. The Company was "working expeditiously" to complete additional procedures related to consumer fintech loan accounting and would be unable to file its 2024 annual report on time.

Shares of The Bancorp, Inc. (NASDAQ: TBBK) declined from $64.53 per share on January 31, 2025, to as low as $9.17 per share on March 10, 2025.

The plaintiff claims that between January 25, 2024 and March 4, 2025, the Defendants failed to disclose to investors that Bancorp had underrepresented the significant risk of default or loss on its REBL loan portfolio, that the Company's current expected credit loss methodology was insufficient to account for the provision and/or allowance of credit losses, that, as a result, the Company was reasonably likely to increase its provision for credit losses, that there were material weakness in its internal control over financial reporting, that its financial statements had not been approved by its independent auditor, that, as a result of the foregoing, the Company's financial statements could not be relied upon, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of The Bancorp, Inc. (NASDAQ: TBBK) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.