NEW YORK, Jan. 23, 2017 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Banc of California, Inc. ("Banc of California" or the "Company") (NYSE: BANC). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Banc of California and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On October 18, 2016, Seeking Alpha published a report alleging that Banc of California had concealed numerous connections between the Company and Jason Galanis, an individual convicted of criminal securities fraud, including that: (i) Banc of California Chief Executive Officer ("CEO") Jason Sugarman was the founder, CEO, and indirect owner of a company controlled by Galanis; and (ii) separately, Galanis controlled Banc of California's founding shareholder. The Seeking Alpha report also alleged that Banc of California had used an off-balance sheet entity to make loans to insiders. On this news, Banc of California stock fell $4.61, or 29.05%, to close at $11.26 on October 18, 2016.
On November 10, 2016, Banc of California disclosed that it was delaying the filing of its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016 in order for its Special Committee to complete a review into certain purported improper relationships and related party transactions.
On January 23, 2017, Banc of California announced Sugarman's resignation as CEO and that the U.S. Securities and Exchange Commission had opened an investigation into whether Banc of California had misled investors in its response to the October 2016 Seeking Alpha report. On this news, Banc of California stock has fallen as much as $1.75, or 10.84%, to a low of $14.40 on January 23, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP