SAN DIEGO, Nov. 07, 2016 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed in California on behalf of certain purchasers of shares of Opus Bank (NASDAQ:OPB) over alleged Securities Laws Violations by Opus Bank.
The lawsuit seeks to recover damages for certain NASDAQ:OPB investors.
Investors who purchased shares of Opus Bank (NASDAQ:OPB) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants made false and/or misleading statements and/or failed to disclose that certain of the Company’s loans were of poor quality, that the Company was over-representing the quality of the loans to the public, that, as such, the Company failed to properly account for the loans in violation of Generally Accepted Accounting Principles (“GAAP”), that, as a result, the Company would be forced to recognize large charge-offs associated with the loans, that the Company lacked adequate internal controls over accounting and financial reporting, and that, as a result of the foregoing, defendants’ positive statements about Opus’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On October 17, 2016, Opus Bank announced earnings for the third quarter 2016, and disclosed that, “As part of the credit review process of impaired loans, new developments supported charge-offs being recognized on eight loan relationships through the allowance for loan losses at September 30, 2016. Charge-offs were recorded on these eight loan relationships, which have been impacting the provision for loan losses and earnings for the past eight quarters and include three of the same loan relationships that were discussed during Opus' second quarter 2016 earnings conference call. Charge-offs for the eight loan relationships totaled $38.8 million and had specific reserves of $16.7 million previously recorded. In addition, these charge-offs increased the reserve levels recorded against the remaining loan portfolio by $13.6 million as a result of higher loss factors incorporated into our allowance for loan losses methodology to reflect the charge-offs in the third quarter of 2016.” Shares of Opus Bank (NASDAQ:OPB) dropped from $35.04 per share on October 14, 2016, to as low as $18.20 per share on October 24, 2016.
Those who purchased Opus Bank (NASDAQ:OPB) shares should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.