SAN DIEGO & IRVINE, Calif.--(BUSINESS WIRE)--Shareholder rights law firm, Robbins Arroyo LLP, announces that a class action complaint was filed against Banc of California, Inc. (NYSE: BANC) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Banc of California securities between August 7, 2015 and January 23, 2017, for alleged violations of the Securities Exchange Act of 1934 by Banc of California's officers and directors. Banc of California operates as the bank holding company for Banc of California, a National Association that provides banking products and services in the United States.
View this information on the firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/banc-of-california-inc-feb-2017
Banc of California Accused of Subjecting the Company to Significant Regulatory Risk
According to the complaint, Banc of California submitted a series of filings with the U.S. Securities and Exchange Commission ("SEC") assuring shareholders of the adequacy and effectiveness of the company's internal controls. On February 18, 2016, Banc of California filed with the SEC its annual report for the year ended December 31, 2015 in which it confirmed the company's and its executives' adherence to the company's Code of Conduct. However, the complaint alleges that Banc of California officials failed to disclose facts concerning the risk of non-approval of the listing of its shares with the New York Stock Exchange ("NYSE"), that the company was issuing unregistered shares to complete its transactions, and that there was a substantial likelihood that the NYSE would not approve the listing of unregistered shares.
On October 18, 2016, Seeking Alpha published a report alleging that Banc of California and certain of its executives may have undisclosed ties to Jason Galanis, who was previously indicted for banking fraud. Among other ties, the article alleged that: (1) Galanis controlled COR Capital, Banc of California's founding shareholder; (2) Banc of California's lead "independent" director had strong ties to Galanis; and (3) that an off-balance sheet lender controlled by some of Banc of California's senior executives financed Galanis. The next day, Banc of California disclosed in an earnings call that it had been internally investigating ties to Galanis for over a year. On January 23, 2017, Banc of California revealed that on October 27, 2016, KPMG authored a letter raising concerns about "inappropriate relationships with third parties," and 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. Lastly, the company disclosed that its Chief Executive Officer was resigning. On this news, Banc of California's stock fell $1.50 per share, or nearly 10%, to close at $14.65 per share on January 23, 2017.
Banc of California Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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