Shareholder Alert: Robbins LLP Announces Hanmi Financial Corporation (HAFC) Sued for Misleading Shareholders

SAN DIEGO & LOS ANGELES--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Hanmi Financial Corporation (NASDAQ: HAFC) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between August 12, 2019 and January 28, 2020. Hanmi operates as the holding company for Hanmi Bank, which provides business banking products and services in the United States.

If you suffered a loss as a result of Hanmi's misconduct, click here.

Hanmi Financial Corporation (HAFC) Accused of Misleading Shareholders

According to the complaint, on August 12, 2019, Hanmi announced that it would be unable to timely file its quarterly report due to an evaluation of "the classification of a single $40.7 million credit relationship… and the related adjustment to the allowance for loan and lease losses." Hanmi acknowledged the review could affect the financial statements included in the report and could indicate a possible internal control deficiency related to construction lending, but failed to disclose that the troubled loan could lead to future provisions in the millions. Then, on January 28, 2020, Hanmi reported net income of $3.1 million for the quarter, including an additional "$6.9 million specific provision for loan and lease losses related to a previously identified $39.7 million troubled loan relationship." To secure the loan relationship, Hanmi disclosed that the Company "received current appraisals on the personal property… and have provided for a specific allowance in the lower range of the appraised values." On this news, Hanmi's stock price fell almost 10% to close at $16.99 per share.

Hanmi Financial Corporation (HAFC) Shareholders Have Legal Options

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Robbins 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. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.

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