Banc of California investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Banc of California is purportedly a financial holding company regulated by the Federal Reserve Board that serves California’s private businesses and entrepreneurs.
The Class Period commences on October 29, 2015 when Banc of California issued a press release entitled “Banc of California Reports Third Quarter Earnings.”
According to the complaint, on October 18, 2016, a SeekingAlpha.com contributor with the user name “Aurelius” published an article on SeekingAlpha.com entitled “BANC: Extensive Ties To Notorious Fraudster Jason Galanis Make Shares Un-Investible.” Following this news, Banc of California’s stock price fell $4.61 per share, or 29%, to close at $11.26 per share on October 18, 2016, on unusually heavy trading volume.
Then, On January 23, 2017, Banc of California announced its CEO resignation and that the United States Securities and Exchange Commission had opened an investigation into whether the company had misled investors in its response to the October 2016 Seeking alpha report. Following this news, the company’s shares fell $1.50 per share, or nearly 10%, to close on January 23, 2017 at $14.65 per share, on unusually high volume of over 6 million shares.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose: (1) that the company had extensive ties to Galanis; (2) that, given Galanis’ history, the company’s ties to Galanis created substantial regulatory risk; (3) that revelation of Galanis’ ties to the company could cause a substantial decline in the market price of the company’s securities; (4) that the company’s communications to investors regarding the Seeking Alpha investigation was misleading; and (5) that, as a result of the foregoing, the defendants’ positive statements about Banc of California’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
If you are a member of the class described above, you may no later than March 24, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
Kessler Topaz Meltzer & Check, LLP
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