SAN FRANCISCO, Feb. 3, 2020 /PRNewswire/ -- Hagens Berman urges investors in Hanmi Financial Corporation (NASDAQ: HAFC) who have suffered significant losses to submit their losses now. The firm is actively investigating whether the Company and senior executives violated federal securities laws, and certain investors may have valuable claims.
Hanmi Financial Corporation (HAFC) Investigation:
The investigation centers on whether Hanmi's financial reporting misled investors, including its accounting and disclosures with respect to troubled loans.
On Aug. 12, 2019, Hanmi announced it would not timely file its 2Q 2019 quarterly report, disclosing that "the Company and its auditor are evaluating the classification of a single $40.7 million credit relationship (comprised of a $28.0 million construction loan and a $12.7 million business loan) and the related adjustment to the allowance for loan and lease losses that could affect the financial statements." This news drove the price of Hanmi shares sharply lower that day.
On Oct. 4, 2019, Hanmi belatedly filed its 2Q 2019 quarterly report, divulging that senior management had identified material weaknesses in internal controls over financial reporting, which "allowed for the inadequate review of the fair value of collateral dependent impaired loans."
Most recently, on Jan. 28, 2020, Hanmi announced its Q4 2019 financial results, including a $6.9 million specific provision for loan and lease losses related to the previously-disclosed troubled credit relationship. This news drove the price of Hanmi shares sharply lower on Jan. 29, 2020.
"We're focused on investors' losses and whether Hanmi intentionally misled investors regarding the financial impact of the impaired loan," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Hanmi and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Hanmi should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP