RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”) on behalf of purchasers of the Company’s securities between August 7, 2015 and January 23, 2017, inclusive (the “Class Period”).
Banc of California shareholders who purchased their securities during the Class Period may, no later than March 24, 2017, petition the Court to be appointed as a lead plaintiff representative of the class.
Shareholders who wish to discuss this action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys D. Seamus Kaskela or Adrienne O. Bell at (888) 299-7706 or online at: https://www.ktmc.com/new-cases/banc-of-california-inc#join
Banc of California provides banking and home lending services to individuals and businesses.
As detailed in the complaint, on October 18, 2016, SeekingAlpha.com published an article entitled “BANC: Extensive Ties To Notorious Fraudster Jason Galanis Make Shares Un-Investible.” That article alleged that Banc of California’s senior-most officers and board members have ties to Jason Galanis (“Galanis”), who the article claimed has a “long history of secretly gaining control of banks and public companies via front men, looting assets, and leaving unsuspecting investors and taxpayers with hundreds of millions in losses.” Following this news, shares of the Company’s stock declined $4.61 per share, or 29%, to close on October 18, 2016 at $11.26 per share.
Then, on January 23, 2017, Banc of California disclosed that its Chief Executive Officer (“CEO”) had resigned and that the United States Securities and Exchange Commission had opened an investigation into whether the Company had misled investors in its response to the October 2016 SeekingAlpha report. Following this news, shares of the Company’s stock declined $1.50 per share, or 9.3%, to close on January 23, 2017 at $14.65 per share.
The complaint alleges that, throughout the Class Period, Banc of California and certain of its executive officers made a series of false and misleading statements and/or failed to disclose: (1) that the company had extensive ties to Galanis; (2) that, given Galanis’ history, the Company’s ties to Galanis created substantial regulatory risk; (3) that revelation of Galanis’ ties to the company could cause a substantial decline in the market price of the Company’s securities; and (4) that the Company’s communications to investors regarding the SeekingAlpha investigation was misleading. The complaint further alleges that, as a result of the foregoing, the defendants’ positive statements about Banc of California’s business, operations and prospects were false and misleading and/or lacked a reasonable basis.
Banc of California shareholders may, no later than March 24, 2017, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. For additional information, or to learn how to participate in this action, please visit https://www.ktmc.com/new-cases/banc-of-california-inc#join
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.