BERWYN, Pa., Jan. 27, 2017 /PRNewswire/ -- RM LAW, P.C. announces that a class action lawsuit has been filed in United States District Court for the Central District of California on behalf of all persons or entities that purchased Banc of California, Inc. ("Banc" or the "Company") (NYSE: BANC) securities between October 29, 2015 and January 20, 2017, inclusive (the "Class Period").
Banc shareholders may, no later than March 24, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Banc and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, visit: www.maniskas.com.
The complaint charges Banc and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Banc is a financial holding company with operations in commercial, mortgage and corporate banking and financial advisory.
The complaint alleges that throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public. As a result of defendants' false statements, Banc's stock traded at artificially inflated prices during the Class Period, reaching a high of $23.12 per share on August 8, 2016.
On September 7, 2016, Bloomberg News published an article on Banc highlighting several related-party transactions, including Banc paying $100 million for the naming rights on Los Angeles's new soccer stadium for a soccer team whose investors included the brother of Banc's CEO, "marking the latest in a series of deals involving the CEO's family and associates," and stating that such "transactions, even when disclosed, should serve as warning signs for investors when deciding whether to buy stock." Within a week of this article, Banc's stock price fell to below $21 per share. On September 20, 2016, Banc announced that its CFO had resigned after only a year on the job. On this news, Banc's stock price fell again, declining from $20.51 per share to $17.61 per share within a week.
On October 18, 2016, an article was published by Seeking Alpha that highlighted Banc's ties to alleged fraudsters. The article stated that Seeking Alpha had "conducted exhaustive due diligence into [Banc's] leadership team" and had established that Banc's "senior-most officers and board members have a broad mosaic of extensive and indisputable ties to Jason Galanis." According to Seeking Alpha, "[t]he mere presence of a bank leadership team associated with Galanis should send diligent investors running for the hills." On this news, the price of Banc stock fell $4.61 per share, or 29%, on October 18, 2016, to close at $11.26 per share. In response to the Seeking Alpha article, on October 18, 2016, Banc issued a press release announcing that the Company was aware of the Seeking Alpha allegations and that the Board of Directors had initiated a "thorough" and "independent" investigation through "Disinterested Directors."
Then, on January 23, 2017, Banc issued a press release announcing the resignation of its CEO and Chairman of the Board, Steven A. Sugarman, and revealed that the SEC had opened a formal order of investigation directed at certain of the issues that Banc's Special Committee was reviewing concerning the Company's response to the October 18, 2016 Seeking Alpha article in which Banc had mischaracterized the investigation into Seeking Alpha's allegations. As a result of this news, the price of Banc stock dropped $1.50 per share to close at $14.65 per share on January 23, 2017, a decline of 9%.
If you are a member of the class, you may, no later than March 24, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact RM LAW, P.C. (Richard A. Maniskas, Esquire) toll-free at (844) 291-9299 or by email at firstname.lastname@example.org or visit: www.maniskas.com. For more information about class action cases in general or to learn more about RM LAW, P.C. please visit our website: www.maniskas.com.
RM LAW, P.C. is a national shareholder litigation firm. RM LAW, P.C. is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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SOURCE RM LAW, P.C.