New York Community Bancorp, Inc. (NYSE: NYCB) Securities Fraud Class Action

New York Community Bancorp, Inc.  investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than April 8, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.

A class action lawsuit has been filed on behalf of those who purchased or acquired New York Community Bancorp, Inc. (“New York Community Bancorp”) (NYSE: NYCB) securities between March 1, 2023 and February 5, 2024, both dates inclusive (the “Class Period”). 

Case Background:

On January 31, 2024, before the market opened, New York Community Bancorp announced its fiscal fourth quarter 2023 financial results. Among other things, New York Community Bancorp reported a fourth quarter net loss of $252 million due to “a $552 million provision for loan losses,” which was “primarily attributable to higher net charge-offs” and “a significant increase in the ACL [allowance for credit losses]” coverage ratio. Additionally, New York Community Bancorp disclosed that it would cut its quarterly dividend to $0.05 per common share, explaining that these actions were “necessary enhancements” after New York Community Bancorp “crossed th[e] important threshold [of becoming a $100 billion bank] sooner than anticipated as a result of the Signature transaction.” Crossing this $100 billion threshold subjected New York Community Bancorp to enhanced banking standards and requirements. Following this news, New York Community Bancorp’s stock price fell $3.90, or 37.57%, to close at $6.47 per share on January 31, 2024.

Then, on February 5, 2024, Bloomberg published an article addressing New York Community Bancorp’s disappointing fourth quarter 2023 financial results. Bloomberg reported, citing "people with direct knowledge of the matter," that it had been "mounting pressure from a top US watchdog" that "led to" New York Community Bancorp's "surprise decision to slash its dividend and stockpile cash in case commercial real estate loans [went] bad."  According to the Bloomberg article, "[t]he drastic financial moves . . . followed behind-the-scenes conversations with officials from the Office of the Comptroller of the Currency, the people said, asking not to be identified describing the confidential discussions." Bloomberg also reported that New York Community Bancorp’s chief risk officer and chief audit executive left the company in the fourth quarter of 2023.
Following this news, the price of New York Community Bancorp stock fell $1.20 per share, or 22%, to close at $4.20 per share on February 6, 2024, its lowest level since 1997, on unusually high trading volume of more than 147 million shares traded.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Signature Bank acquisition would not be immediately accretive to New York Community Bancorp because it caused New York Community Bancorp to be required to comply with materially enhanced prudential standards, including, among other things, risk-based and leverage capital requirements, and liquidity standards, and required that New York Community Bancorp build capital, reinforce its balance sheet and strengthen its risk management processes; (2) New York Community Bancorp failed to comply with the materially enhanced prudential standards; (3) New York Community Bancorp overstated the quality of its commercial office loan assets; (4) New York Community Bancorp was experiencing higher net charge-offs and deterioration in its commercial office portfolio than represented; (5)  New York Community Bancorp was reasonably likely to incur higher loan losses because it was experiencing higher net charge-offs and deterioration in its commercial office portfolio; (6) New York Community Bancorp was reasonably likely to be forced to increase its allowance for credit losses due to its status as Category IV bank; (7) New York Community Bancorp's loan loss provisions were understated so it overstated quarterly earnings and/or understated quarterly losses; and (8) New York Community Bancorp failed to have adequate internal risk or disclosure controls and procedures.  

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.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.