Lost Money in Axos Financial, Inc.? Gibbs Law Group Investigates Potential Securities Law Violations

OAKLAND, Calif.--(BUSINESS WIRE)--Shares of Axos Financial, Inc. (“Axos”) dropped over 7% in intraday trading on Tuesday, June 4, 2024, following a report published by Hindenburg Research, which alleges that Axos is exposed to the riskiest asset classes and has “lax underwriting standards,” “a loan book filled with multiple glaring problems,” and credit metrics that “show signs of manipulation or distortion.” Gibbs Law Group is investigating a potential Axos Financial Class Action Lawsuit on behalf of shareholders who lost money in Axos Financial, Inc. (NYSE: AX).

What Should Axos Financial, Inc. Investors Do?

Learn more about the Axos Class Action Lawsuit Investigation here, or call us toll-free at [phone] to discuss how you may be able to recover your losses. Our investigation concerns whether Axos Financial, Inc. has violated federal securities laws by providing false or misleading statements to investors.

What is the Axos Financial Securities Lawsuit Investigation About?

On June 4, 2024, Hindenburg Research published a blistering report alleging that industry analysis, interviews with former Axos employees, and an examination of Axos’ loan book indicate that the company has “lax underwriting standards,” “a loan book filled with multiple glaring problems,” and credit metrics that “show signs of manipulation or distortion.” According to the Hindenburg Report, 53% of Axos’ total loan book is also exposed to the “riskiest asset classes”—the sharply deteriorating US commercial real estate market.

In addition to Hindenburg’s claims regarding Axos’ “highly misleading” metrics, the report highlights allegations by a former credit review officer, which were documented in litigation records. According to the former credit review officer, “the Bank routinely misrepresented the average loan to value ratio’s of its loans to investors.” Hindenburg claims that “similar schemes” were identified by other former Axos employees during its investigation.

Following this news, shares of Axos Financial dropped over 7% in intraday trading on Tuesday, June 4, 2024, causing significant harm to investors.

About Gibbs Law Group

Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”

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