A class action lawsuit has been filed against The Bancorp, Inc. on behalf of investors who purchased securities between January 25, 2024, and March 4, 2025. The lawsuit alleges that the company made false and misleading statements and failed to disclose critical information during this period.
The complaint specifically claims that The Bancorp underrepresented the significant risk of default or loss on its commercial real estate bridge loans (REBL) portfolio. It also alleges that the company's current expected credit loss methodology was insufficient, making an increase in the provision for credit losses reasonably likely.
Furthermore, the lawsuit states that the company's financial statements had not been approved by its independent auditor and therefore could not be relied upon. These allegations stem from disclosures made by The Bancorp regarding its 2024 Annual Report and the reliability of prior financial statements.
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