NEW YORK, Dec. 03, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased or otherwise acquired Customers Bancorp, Inc. (“Customers Bancorp” or the “Company”) (NYSE: CUBI) securities between March 1, 2024 and August 8, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) Customers Bancorp had inadequate anti-money laundering practices; and (2) as a result, Customers Bancorp was not in compliance with its legal obligations, which subjected Customers Bancorp to heightened regulatory risk. The Complaint further alleges that on April 12, 2024, Customers Bancorp announced that CFO, defendant Carla A. Leibold, had been fired for “cause” for violating Customers Bancorp policy. On this news, the price of Customers Bancorp stock fell nearly 5%. Customers Bancorp subsequently disclosed that Ms. Leibold’s termination was a “separation by mutual agreement.”
Then, on August 8, 2024, during market hours, the Federal Reserve issued a press release entitled “Federal Reserve Board issues enforcement action with Customers Bancorp, Inc. and Customers Bank,” which attached a written agreement between Customers Bancorp and the Federal Reserve Bank of Philadelphia stating that the Federal Reserve “identified 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.” On this news, the price of Customers Bancorp stock fell more than 15%.
Finally, the Complaint alleges that on August 8, 2024, after market hours, Customers Bancorp disclosed a consent order by the Commonwealth of Pennsylvania, Department of Banking and Securities, Bureau of Bank Supervision, relating “principally to aspects of compliance risk management, including risk management practices governing digital asset-related services; oversight by the Board of Directors of Customers Bancorp and the Bank; compliance with anti-money laundering regulations under the Bank Secrecy Act; and compliance with the regulations of the Office of Foreign Assets Control,” and further stating that “these deficiencies give the Bureau reason to believe that the Bank had engaged in unsafe or unsound banking practices relating to BSA/AML Requirements.” On this news, the price of Customers Bancorp stock fell further.
Investors who purchased or otherwise acquired shares of Customers Bancorp should contact the Firm prior to the January 31, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
