BOSTON, Jan. 26, 2017 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, announces that it has filed a class action lawsuit against Banc of California, Inc. ("Banc of California" or the "Company") (NYSE: BANC) and certain of its officers and directors for violating the federal securities laws.
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 fell nearly another 9% on this news, resulting in tens of millions of dollars in losses to investors.
The case, brought on behalf of investors who purchased or otherwise acquired Banc of California securities between August 7, 2015 and January 23, 2017 (the "Class Period"), alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company and certain of its executives had ties with Jason Galanis; (2) these connections to Galanis, given his prior criminal involvement in banking frauds, created a significant regulatory risk for the Company; (3) the Company and certain of its executives had engaged in undisclosed related party transactions; (4) the revelation of these inappropriate third party relationships and related-party transactions could significantly impact the value of the Company; and (5) as a result, defendants' statements about Banc of California's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
If you wish to serve as a lead plaintiff, you must move the Court no later than March 23, 2017. As a member of the class, you may seek to file a motion to serve as a lead plaintiff or take no action and remain an absent class member. If you wish to become involved in the litigation or have questions about your legal rights, 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.
The case, filed January 26, 2017, is pending in the United States District Court for the Central District of California, and is captioned Cardona v. Banc of California, Inc., et al., Ca No. 2:17-cv-00621. The court is located at 350 W 1st Street, Suite 4311, Los Angeles, CA 90012.
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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