Banc of California Inc (NYSE:BANC) Investor Securities Class Action Lawsuit 01/23/2017
January 23, 2017 (Shareholders Foundation) - An investor in shares of Banc of California Inc (NYSE:BANC) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Banc of California Inc in connection with certain allegedly false and misleading statements made between August 7, 2015, and January 23, 2017.
According to the complaint the plaintiff alleges on behalf of purchasers of Banc of California Inc (NYSE:BANC) common shares between August 7, 2015, and January 23, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between August 7, 2015, and January 23, 2017, the Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects, including that the Company had extensive ties to an alleged “fraudster” named Jason Galanis (“Galanis”), that, given Galanis’ history, the Company’s ties to Jason Galanis created substantial regulatory risk, that revelation of Jason Galanis’ ties to the Company could cause a substantial decline in the market price of the Company’s securities, that the Company allegedly misled investors concerning the Company’s connections with Jason Galanis, and that, as a result of the foregoing, Defendants’ positive statements about Banc of California’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On October 18 2016, an article was published claiming, among other things, that certain Banc of California insiders had undisclosed ties to individuals previously accused of involvement with the collapse of Gerova Financial.
On January 23, 2017, Banc of California Inc announced the resignation of its CEO, Steven A. Sugarman, and that the United States Securities and Exchange Commission (“SEC”) had opened an investigation into whether the Company had misled investors in its response to the October 2016 report disclosing a connection between the Banc of California and an alleged fraudster named Jason Galanis.
On January 23, 2017, NYSE:BANC shares closed at $14.65 per share