The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Blue Ridge Bankshares, Inc. (BRBS) Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Blue Ridge Bankshares, Inc. (“Blue Ridge” or the “Company”) (NYSE: BRBS) securities between March 10, 2023 and October 31, 2023, inclusive (the “Class Period”). Blue Ridge investors have until February 5, 2024 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On October 31, 2023, Blue Ridge disclosed that it had “determined that certain specialty finance loans that, as previously disclosed, were placed on nonaccrual, reserved for, or charged off in the interim periods ended March 31, 2023 and June 30, 2023 should have been reported as nonaccrual, reserved for, or charged off in earlier periods,” and that its “audited financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2022, and unaudited interim financial statements included in quarterly reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023 should no longer be relied upon and will be restated.” The Company further disclosed that the restatements will result in “lower net income and earnings per share” and “that a material weakness existed in the timely risk grading, nonaccrual status, and, thus, in the determination of the adequacy of the allowance for credit losses for the specialty finance portfolio of loans[.]”

On this news, Blue Ridge’s stock price fell $1.06, or 33.7%, to close at $2.09 per share on November 1, 2023, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Blue Ridge’s financial statements from March 10, 2023 to the present included certain errors; (2) as a result, Blue Ridge would need to restate its previously filed financial statements from March 10, 2023 to October 31, 2023; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Blue Ridge securities during the Class Period, you may move the Court no later than February 5, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Blue Ridge securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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