A lead plaintiff is being sought in a class action lawsuit filed on behalf of individuals or organizations that bought Banc of California Inc (NYSE:BANC) securities. The class period for the affected individuals or organizations is between October 29, 2015, and January 20, 2017. To qualify and to be appointed as the lead plaintiff one must move the court within 60 days after the notice has been given.
In the class action lawsuit, the defendants are accused of making statements that were misleading and materially false. The defendants are also accused of not revealing materially adverse facts concerning the firm’s operations business and prospects. This includes the fact that the firm had ties to Jason Galanis who is an alleged fraudster, a fact which posed numerous regulatory and perception risks.
Investment website report
Following a report that appeared in Seeking Alpha in the month of October 2016, the Securities and Exchange Commission launched investigations into whether Banc of California had given misleading information to investors concerning whether the firm had any ties to Galanis, who had been previously indicted for his involvement in banking fraud. The article specifically alleged that the chief executive officer of Banc of California, Stephen A. Sugarman, had some undisclosed ties to the alleged banking fraudster.
Consequently, shares of the company declined by close to ten percent or about $1.50 a share. The traded volume was more than 6 million shares which was unusual. Sugarman resigned on January 23, 2017. When the news of the alleged ties first broke, the securities fell by a whopping 29 percent.
No action needed for class members
Though those desiring to be appointed as the lead plaintiff need to act within 60 days upon notification, there is no action that needs to be taken by those seeking to be a member of the class for now. One may also hire a counsel of their choice, choose to take no action and even choose to be an absent member of the class.
In Monday’s trading, shares of Banc of California Inc plunged by 9.29% to close the day at $14.65.
