Banc of California, Inc.
Period: Oct 29, 2015 to Jan 20, 2017
Lead Plaintiff Deadline: Mar 27, 2017
Summary of Case:
A securities class action has been filed against Banc of California, Inc. ("Banc of California") on behalf of all persons and entities that acquired Banc of California securities between October 29, 2015 through January 20, 2017. This case has been filed in the USDC - California (Central).
The Complaint 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, including: (1) that the Company had extensive ties to an alleged "fraudster" named Jason Galanis ("Galanis"); (2) that, given Galanis history, the Company's ties to Galanis created substantial regulatory risk; (3) that revelation of Galanis ties to the Company could cause a substantial decline in the market price of the Company's securities; (4) that the Company allegedly misled investors concerning the Company's connections with Galanis; and (5) that, as a result of the foregoing, Defendants positive statements about Banc of California's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On January 23, 2017, Banc of California announced the resignation of its CEO, Steven A. Sugarman, and that the United States Securities and Exchange Commission had opened an investigation into whether the Company had misled investors in its response to an October 2016 Seeking Alpha report disclosing a connection between the Banc of California and an alleged fraudster named Jason Galanis.
On this news the Company's shares fell $1.50 per share, or nearly 10%, to close on January 23, 2017 at $14.65 per share, on unusually high volume of over 6 million shares.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.