SAN DIEGO & LONDON--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Metro Bank PLC (OTC: MBNKF) has filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between March 6, 2018 and May 1, 2019. Metro Bank provides retail and commercial banking services in the United Kingdom.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/metro-bank-plc/
Metro Bank Accused of Misleading Investors
According to the complaint, Metro Bank falsely represented the effectiveness of its risk management policies and control since 2018. In January 2019, Metro Bank disclosed that it had misclassified the risk terms of hundreds of millions of pounds of loans. On this news, Metro Bank's stock fell nearly 35% to close at $18.80 per share on January 23, 2019. On January 31, 2019, the Financial Times revealed that the realization of the accounting errors was not found during Metro Bank's own audit, but was in response to a financial services regulatory body's concerns with its loans. In February 2019, Metro Bank revealed that the multiple regulatory bodies had initiated investigations into the situation. On this news, Metro Bank's shares fell over 22% to close at $13.25 per share on February 27, 2019. In May 2019, Metro Bank's 1Q presentation revealed reduced profits and a loss of a number of large customers due to the misclassification fiasco. On this news, Metro Bank's stock fell over 18% over the next two trading days to close at $8.50 per share on May 3, 2019, and has yet to recover.
Metro Bank Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@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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