SAN DIEGO & BETHESDA, Md.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Eagle Bancorp, Inc. (NASDAQ: EGBN) has filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between March 2, 2015 and July 17, 2019. Eagle Bancorp operates as the bank holding company for EagleBank, which provides commercial and consumer banking services.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/eagle-bancorp-jul-19/
Eagle Bancorp Accused of Misleading Investors
According to the complaint, in its 2016 Form 10-K, Eagle Bancorp acknowledged deficiencies in its procedures and internal control over financial reporting, but touted a remediation plan to address the issue. Then, in December 2017, Aurelius Value reported allegations that EagleBank executives offered bank loans in exchange for cheap valuations for other personal investments and "treat Eagle as their own private piggy bank." Eagle Bancorp rejected the assertions and recovered from a brief stock price drop, continuing to trade its stock at inflated prices. In its following Form 10-Ks, Eagle Bancorp touted that its controls over financial reporting remained effective and that any insider related party loans or transactions were made "in the ordinary course of business…as those prevailing at the time for comparable transactions with outsiders." These statements proved to be materially false and misleading in July 2019, when Eagle Bancorp revealed ongoing internal and government investigations into its disclosure of related party transactions and its relationship with a local public official. On this news, Eagle Bancorp's stock fell $14.30, or 26.75%, to close at $39.15.
Eagle Bancorp 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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