| COMPANY |
Customers Bancorp, Inc. |
| COURT |
United States District Court for the Eastern District of Pennsylvania |
| CASE NUMBER |
24-cv-06416 |
| JUDGE |
The Hon. Juan Ramon Sánchez |
| CLASS PERIOD |
March 1, 2024 and August 8, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS JANUARY 31, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
The Class Period begins on March 1, 2024. The day before, February 29, 2024, after the markets had closed, Customers Bancorp filed with the SEC its annual report on Form 10-K for the year ending December 31, 2023 (the “2023 Annual Report”). Attached to the 2023 Annual Report were certifications pursuant to the Sarbanes-Oxley Act of 2002 signed by Customer Bancorp’s CEO and CFO attesting to the accuracy of the company’s financial reporting, the disclosure of any material changes to the company’s internal control over financial reporting, and the disclosure of all fraud.
On April 12, 2024, after the market closed, Customers Bancorp announced that the company’s CFO had been fired for “cause” for violating company policy. On this news, Customers Bancorp common stock price fell $2.40 per share, or approximately 4.9%, from a close of $49.02 per share on April 12, 2024, to close at $46.62 per share on April 15, 2024.
On August 8, 2024, during market hours, the Federal Reserve announced it had issued an enforcement action against Customers Bancorp and Customers Bank related to its digital asset banking services and its instant payments platform. The Federal Reserve identified “significant deficiencies related to the Bank’s risk management practices and compliance with the applicable laws, rules, and regulations relating to anti-money laundering.” On this news, Customers Bancorp common stock price fell $7.22 per share, or approximately 13.31%, from a close of $54.23 per share on August 7, 2024, to close at $47.01 per share on August 8, 2024.
On August 8, 2024, after the market closed, Customers Bancorp announced its second quarter 2024 financial results. Additionally, Customers Bancorp disclosed a consent order by the Commonwealth of Pennsylvania, Department of Banking and Securities, Bureau of Bank Supervision (the “Bureau”) which revealed that the Bureau identified deficiencies related to the Bank’s Anti-Money Laundering (“AML”) compliance. On this news, Customers Bancorp common stock price fell $1.08 per share, or approximately 2.29%, from a close of $47.01 per share on August 8, 2024, to close at $45.93 per share on August 9, 2024.
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. Specifically, Defendants failed to disclose to investors that: (1) Customers Bancorp had significant deficiencies relating to compliance with AML-focused statutes, rules, and regulations, including the Bank Secrecy Act; (2) Customers Bancorp understated the heightened compliance risks (in particular, compliance with AML-focused laws) as a result of the company’s digital asset business; and (3) as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.