PHILADELPHIA, Dec. 17, 2024 (GLOBE NEWSWIRE) -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against Customers Bancorp, Inc. (“Customers Bancorp” or the “Company”) (NYSE: CUBI) on behalf of purchasers of Customers Bancorp securities between March 1, 2024 through August 8, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired CUSTOMERS BANCORP securities during the Class Period may, no later than JANUARY 31, 2025, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Peter Hamner at phamner@bm.net, or CLICK HERE.
Headquartered in West Reading, PA, Customers Bancorp is a bank holding company.
According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Customers Bancorp had inadequate anti-money laundering practices; and (ii) as a result, Customers Bancorp was not in compliance with its legal obligations, which subjected Customers Bancorp to heightened regulatory risk.
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 $2.40 per share – nearly 5% – from a closing price of $49.02 per share on April 12, 2024 to a closing price of $46.62 per share on April 15, 2024.
Then, on August 8, 2024, the Federal Reserve announced an enforcement action against Customers Bancorp. This announcement revealed that the Federal Reserve had “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 [‘BSA’],” according to the complaint.
On this news, the price of Customers Bancorp stock fell $7.22 per share, or more than 13%, from a closing price of $54.23 per share on August 7, 2024 to a closing price of $47.01 per share on August 8, 2024.
Shares fell further when after market hours on August 8, 2024, Customers Bancorp disclosed a consent order by the Commonwealth of Pennsylvania, Department of Banking and Securities, Bureau of Bank Supervision, 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.”
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contact:
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Peter Hamner
Berger Montague PC
phamner@bm.net
