NEW YORK, Jan. 28, 2020 /PRNewswire/ -- Bernstein Liebhard, a nationally acclaimed investor rights law firm, is investigating potential securities fraud claims on behalf of shareholders of Provident Financial Services, Inc. ("Provident" or the "Company") (NYSE: PFS) from allegations that Provident might have issued misleading information to the investing public.
If you purchased Provident securities, and/or would like to discuss your legal rights and options please visit Provident Shareholder Investigation or contact Matthew E. Guarnero toll free at (877) 779-1414 or [email protected].
On April 27, 2018, Provident released its financial results for the first fiscal quarter of 2018, disclosing that there was deterioration in certain "commercial credits, including a $15.4 million credit to a commercial borrower" that filed for bankruptcy in March 2018. Provident disclosed that the Company had established a $2.5 million reserve for this loan.
On July 5, 2018, Provident disclosed that it expected an additional reserve would be required for the remaining balance of the previously disclosed $15.4 million credit, and that its net income for the quarter ended June 30, 2018 would be reduced by as much as $9.3 million, after tax, or up to $0.14 per diluted share.
Then, on July 27, 2018, Provident released its financial results for the second fiscal quarter of 2018, disclosing that two additional loans from another commercial borrower became impaired during the quarter, leading to a net charge-off of $4 million. Provident's Chairman, President, and Chief Executive Officer ("CEO") Christopher Martin stated that the losses were the result of "two commercial relationships which we believe involved borrower fraud in each instance."
On this news, Provident's stock price fell $1.46 per share, or 5.27%, to close at $26.23 per share on July 27, 2018.
Later, in December 2019, certain Provident emails were made public in litigation in New York state court, which indicated that Provident was aware of the fraudulent nature of and/or risks posed by at least one of its failed loans. Specifically, Provident executives and top-level management, including CEO Martin, seemingly ignored multiple red flags regarding a potential loan to Lotus Exim International ("Lotus") before extending a $17 million loan to Lotus.
If you purchased Provident securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/providentfinancialservicesinc-pfs-shareholder-class-action-lawsuit-stock-fraud-241/apply/ or contact Matthew E. Guarnero toll free at (877) 779-1414 or [email protected].
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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