BOSTON, Jan. 23, 2017 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, is investigating whether Banc of California, Inc. ("Banc of California" or the "Company") (NYSE: BANC) and certain of its officers and directors violated federal securities laws following the news that the SEC has initiated a formal investigation against the Company.
On October 18, an article published on an investment website alleged that the Company and its CEO, Steven Sugarman, may have undisclosed ties to Jason Galanis, who was previously indicted for his role in a banking fraud. On this news, the Company's stock plunged nearly 29%. The next day, Banc of California disclosed in an earnings call that the Company had been internally investigating ties to Galanis for more than a year.
On January 23, 2017, Banc of California announced that: (1) the Company's CEO, Steven Sugarman, was resigning; (2) that KPMG, the Company's independent auditor raised concerns about "inappropriate relationships with third parties;" and (3) that on January 12, 2017, the SEC issued a formal order of investigation and issued a subpoena seeking certain documents relating to the alleged third-party relationships.
Shares of Banc of California have fallen nearly another 9% on this news. These revelations and resultant stock drops have caused losses of tens of millions of dollars to investors.
If you recently purchased or otherwise acquired Banc of California securities and have questions about your legal rights or possess information relevant to this investigation, please contact attorney Bradley Vettraino at (617) 398-5600, by email at email@example.com, or by visiting www.blockesq.com/bancofcalifornia. Confidentiality to whistleblowers or others with information relevant to the lawsuit is assured.
Block & Leviton LLP is a Boston-based law firm representing investors nationwide. The firm's lawyers have collectively been prosecuting securities cases on behalf of individual and institutional investors for over 50 years, and have recovered billions of dollars on their behalf. Block & Leviton's investigations into corporate wrongdoing were recently covered by the New York Times.
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Block & Leviton LLP
Bradley J. Vettraino
155 Federal Street, Suite 400
Boston, MA 02110
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SOURCE Block & Leviton LLP