Class Action Lawsuit Filed Against Customers Bancorp, Inc. for Securities Violations
On January 27, 2025, The Schall Law Firm announced a class action lawsuit against Customers Bancorp, Inc. (CUBI) for alleged securities law violations. The lawsuit was filed on behalf of all persons who purchased the Company’s securities between March 1, 2024, and August 8, 2024, inclusive (the “Class Period”).
Details of the Lawsuit
The lawsuit alleges that Customers Bancorp and certain of its executives violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the defendants made false and misleading statements and failed to disclose material information to investors.
Allegations of False Statements
According to the complaint, the defendants made false and misleading statements regarding the Company’s financial condition and business prospects. Specifically, the defendants allegedly failed to disclose that the Company was experiencing significant loan losses and that its loan underwriting standards had deteriorated. These allegations came to light in August 2024 when the Company announced a significant decline in its earnings and had to take a large provision for loan losses.
Impact on Investors
The lawsuit alleges that investors suffered significant losses as a result of the defendants’ false statements and omissions. The complaint seeks to recover damages on behalf of all investors who purchased Customers Bancorp’s securities during the Class Period.
Impact on the World
The lawsuit against Customers Bancorp is significant because it highlights the importance of transparency and accuracy in corporate disclosures. Securities fraud can have far-reaching consequences, including the loss of investor confidence, damage to reputations, and potential harm to the broader financial markets.
What Does This Mean for Me?
If you purchased Customers Bancorp’s securities during the Class Period, you may be eligible to participate in the class action lawsuit. It is important to consult with a securities attorney to determine your rights and potential remedies. Even if you choose not to participate in the lawsuit, it is essential to stay informed about the progress of the case and any potential developments.
Conclusion
The class action lawsuit against Customers Bancorp is a reminder of the importance of transparency and accuracy in corporate disclosures. Investors rely on accurate information to make informed decisions, and securities fraud can have serious consequences. If you purchased Customers Bancorp’s securities during the Class Period and believe you may be eligible to participate in the lawsuit, it is important to consult with a securities attorney to determine your rights and potential remedies. Stay informed and stay vigilant.
- Customers Bancorp, Inc. (CUBI) is the subject of a class action lawsuit.
- The lawsuit alleges securities law violations during the Class Period.
- The complaint seeks to recover damages on behalf of all investors who purchased Customers Bancorp’s securities during the Class Period.
- The lawsuit highlights the importance of transparency and accuracy in corporate disclosures.
- Investors who believe they may be eligible to participate in the lawsuit should consult with a securities attorney.
