Lead Plaintiff Deadline is January 31, 2025
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NEW YORK, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”) announces that a federal securities class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of persons and entities that purchased or otherwise acquired Customers Bancorp, Inc (“Customers” or the “Company”) (NYSE: CUBI) securities between: March 1, 2024, through August 8, 2024, inclusive (the “Class Period”).
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All investors who purchased shares and incurred losses are advised to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
Customers Bancorp is a bank holding company engaged in banking activities through its wholly owned subsidiary, Customers Bank. Customers represented that it “is a forward-thinking bank with strong risk management that provides commercial and consumer customers the stability and trust inherent in working with an established and regulated financial institution.”
During the Class Period, Customers Bancorp represented that its disclosure controls and procedures, as well as its internal control over financial report were effective. The Company also disclosed hypothetical risks associated with the Bank Secrecy Act, digital assets, and its blockchain-based payments platform. However, these representations were false and misleading because the Company had “significant deficiencies” relating to compliance with Anti-Money Laundering-focused statutes, rules, and regulations, and failed to adequately disclose the increased compliance risks in the digital asset business.
On April 12, 2024, the truth began to emerge when the Company announced via a current report filed on Form 8-K, that its Chief Financial Officer, Carla A. Leibold, was terminated for cause for violating Company policy. One month earlier, Leibold sold close to $2 million in stock on the open market. Weeks later, on April 25, 2024, the Company filed an amended current report on Form 8-K/A, which announced that Ms. Leibold’s termination was a “separation by mutual agreement.”
Then, on August 8, 2024, during market hours, the Federal Reserve announced an enforcement action with Customers Bancorp, Inc., and Customers Bank. The announcement included an agreement between the Company and the Federal Reserve Bank of Philadelphia, which explained that “significant deficiencies related to the Bank’s risk management practices and compliance with the applicable laws, rules, and regulations relating to anti-money laundering (“AML”) including the Bank Secrecy Act” were identified. The Agreement provided that the Company’s Board submit a written plan regarding oversight of the management and operations of the Bank’s compliance with the BSA/AML Requirements and OFAC Regulations including with respect to the Company’s digital asset strategy.
On this news, Customers Bancorp’s stock fell $8.38 per share or 15.1% to close at $47.01 per share on August 8, 2024.
On the same date, after the market closed, the Company filed its quarterly report on Form 10-Q, which disclosed a Consent Order by the Commonwealth of Pennsylvania, Department of Banking and Securities, Bureau of Bank Supervisors (the “Consent Order”). The Consent Order stated that “these deficiencies give the Bureau reason to believe that the Bank had engaged in unsafe and unsound banking practices relating to the BSA/AML Requirements.”
On this news, the price of Customers Bancorp stock fell $1.08 per share or 2.29% to close at $45.93 on August 9, 2024.
If you have incurred losses, you may, no later than January 31, 2025, request that the Court appoint you as the lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
Wolf Haldenstein has experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas, and offices in New York, Chicago, Nashville and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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