Bancorp (CUBI) Customers Stumble After Federal Reserve Finds ‘Significant Deficiencies’ in Risk Management and Compliance – Hagens Berman

CUBI investors who have suffered losses are encouraged to contact the company

San Francisco, California–(Newsfile Corp. – August 21, 2024) – Hagens Berman calls on Bancorp, Inc. clients. (NYSE:CUBI) investors who have suffered significant losses to report their losses now. The company also encourages anyone with knowledge that may assist in the investigation to contact its attorneys.

Visit: www.hbsslaw.com/investor-fraud/CUBI
Contact the company now: [email protected]
844-916-0895

Investigation into the Bancorp, Inc. (CUBI) Customer Case:

The investigation focuses on the validity of Customers Bancorp’s recent assurances that cost-cutting opportunities will not negatively impact “risk management and compliance or investments in key technologies” and that “these are areas we plan to further improve by redeploying savings.”

The cracks may have started appearing starting on April 12, 2024, when Customers Bancorp announced the abrupt “cause” firing of then-CFO Carla A. Leibold. Customers Bancorp said she “violated company policy” but offered no further explanation beyond saying it disputed that characterization. The news sent Customers Bancorp’s stock price down nearly 5% the next day.

Then, on April 25, 2024, Customers Bancorp announced that the company and Leibold had entered into a separation agreement that day, reclassifying her employment termination as a “mutual separation.” However, the move was greeted with skepticism by investors, as Customers Bancorp shares fell more than 5% over the next day.

Most recently, on August 8, 2024, Customers Bancorp included an agreement with the Federal Reserve Bank of Philadelphia (“Reserve Bank”) in its quarterly report. The agreement stated that Reserve Bank “has identified significant deficiencies relating to (Customers) Bank’s risk management practices and compliance with applicable anti-money laundering laws, rules and regulations” and “regulations issued by the Office of Foreign Assets Control of the United States Department of the Treasury(.)” The news caused Customers Bancorp’s stock price to drop by more than 13% that day.

“We are investigating whether Customers Bancorp may have misled investors about its commitment to improving its risk management and compliance functions and, if so, whether there is a connection to the recent turnover of CFOs,” said Reed Kathrein, a partner at Hagens Berman who led the investigation.

If you invested in Customers Bancorp and suffered significant losses or have knowledge that can help the company in its investigation, report your losses now »

For more information and answers to frequently asked questions about the Customers Bancorp investigation, read more »

Whistleblowers: Individuals with nonpublic information regarding Customers Bancorp should consider their options for assisting in the investigation or take advantage of the SEC Whistleblower Program. Under the new program, whistleblowers who provide original information may receive rewards of up to 30 percent of any successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or write to [email protected].

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About Hagens Berman
Hagens Berman is a global, complex plaintiffs’ rights litigation firm with a focus on corporate liability. The firm maintains a robust practice representing investors, as well as whistleblowers, employees, consumers and others in matters that achieve real results for those harmed by corporate negligence and other wrongdoing. The Hagens Berman team has recovered more than $2.9 billion in this area of ​​law. For more information about the firm and its successes, visit hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220663