The Bancorp (TBBK)
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
On March 21, 2024, The Bancorp’s stock experienced a significant drop following allegations by activist short seller Culper Research against the bank holding company. Culper accused The Bancorp (TBBK) of misrepresenting the quality of its real estate bridge loan (REBL) portfolio and claimed that the bank’s loss reserves were significantly insufficient. These allegations prompted Hagens Berman, a prominent law firm specializing in investors’ rights, to initiate an investigation into potential violations of securities laws.
Culper Research’s report, titled “The Bancorp Inc. (NASDAQ: TBBK): Bridge to Nowhere,” draws from an extensive review that included analyzing individual loans, visiting 21 TBBK-funded properties, and engaging in discussions with former TBBK employees and borrowers. One critical example highlighted by Culper involves a $39.4 million REBL loan for a Texas apartment complex, which, despite having not received interest payments for three months and being only 47% occupied, had no reserves set against it by TBBK.
Culper criticized The Bancorp for engaging with inexperienced syndicated borrowers driven by quick profit motives, who have failed to achieve their investment objectives due to soaring costs, high vacancies, stagnant rent levels, and surging interest rates. According to Culper, TBBK’s reserve of $4.7 million, or merely 0.24% of its REBL portfolio, is grossly inadequate.
Moreover, Culper’s discussions with a former TBBK REBL underwriter suggested that the company’s actual losses could be 10 to 15 times higher than the reserves currently allocated. Following these revelations, TBBK shares fell by approximately 10%, decreasing by $3.63 on March 21, 2024.
