SAN FRANCISCO, June 12, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges First Republic Bank (NYSE: FRC) investors who suffered $1 million or more losses to submit your losses now.
Class Period: Jan. 14, 2021 – Mar. 14, 2023
Lead Plaintiff Deadline: June 23, 2023
Visit: www.hbsslaw.com/investor-fraud/FRC
Contact An Attorney Now: FRC@hbsslaw.com
844-916-0895
First Republic Bank (FRC) Securities Fraud Class Action:
The litigation focuses on First Republic Bank’s repeated assurances that its capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks.
According to the complaint, Defendants (1) misrepresented the strength of First Republic’s balance sheet and liquidity position, while understating the significant pressure that rising interest rates posed to the bank’s business model, and (2) misrepresented the strength of the bank’s ability to deliver consistent results across different interest rate environments, the diversity of the bank’s deposit base, and its ability to generate net interest income growth and maintain stable net interest margins.
Investors began to learn the truth on Oct. 14, 2022, when First Republic announced disappointing Q3 2022 financial results and revealed that its net interest income growth slowed and its net interest margin severely contracted.
Defendants continued to maintain that First Republic’s deposit base “is strong and well diversified” and its “liquidity position remains very strong.”
Despite these assurances, on Mar. 12, 2023 First Republic announced it shored up its finances with additional funding from the Federal Reserve and JPMorgan Chase.
Then, on Mar. 15, 2023, the Financial Times reported that S&P Global Ratings downgraded First Republic’s credit four tiers to junk (BB+), largely because the rating agency concluded that about 68% of the bank’s total deposits (the portion above the FDIC’s insurance limit of $250k) is the most susceptible to withdrawal. Fitch Ratings also reportedly downgraded First Republic to BB- from A-, and put the bank on negative rating watch, and cited deposit concerns.
These events sent the price of First Republic shares sharply lower.
“We’re focused on investors’ losses and proving First Republic mislead investors about its balance sheet and liquidity position” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in First Republic Bank and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding First Republic Bank should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FRC@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
