Flagstar Bancorp Inc (NYSE: FBC) Investor Securities Class Action Lawsuit 09/05/2014

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Company Name(s): 
Flagstar Bancorp.
Case Name: 
Flagstar Bancorp. Shareholder Class Action Lawsuit 09/05/2014
Case Status: 
Case Dismissed
Affected Securities
NYSE: FBC
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/05/2014
Class Period Begin: 
10/22/2013
Class Period End: 
08/26/2014
Court of Filing: 
U.S. District Court for the Eastern District of Michigan
Deadline To File for Lead: 
11/04/2014
Case Dismissed: 
02/10/2016
Summary: 

February 10, 2016 - The court granted defendants' motion to dismiss.

April 9, 2015 - Defendants filed a motion to dismiss.

February 3, 2015 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Flagstar Bancorp Inc (NYSE: FBC) common shares between October 22, 2013 and August 26, 2014. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between October 22, 2013 and August 26, 2014.

December 2, 2014 - Lead plaintiff and lead counsel were appointed.

November 4, 2014 - Lead plaintiff motions were filed.

September 5, 2014 - An investor in shares of Flagstar Bancorp Inc (NYSE: FBC), filed a lawsuit in the U.S. District Court for the Eastern District of Michigan against Flagstar Bancorp Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between January 22, 2014 and August 26, 2014.

According to the complaint the plaintiff alleges on behalf of purchasers of Flagstar Bancorp Inc (NYSE:FBC) common shares between January 22, 2014 and August 26, 2014, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between January 22, 2014 and August 26, 2014, Defendants made allegedly false and/or misleading statements and/or failed to disclose that dating back to 2011, the Flagstar Bancorp Inc's loss mitigation practices and default servicing operations were not in compliance with various federal consumer financial laws promulgated by the Consumer Financial Protection Bureau ("CFPB"), that Flagstar Bancorp Inc lacked proper internal controls, and that as a result of the above, Flagstar Bancorp Inc’s financial statements were materially false and misleading at all relevant times.

On January 22, 2014, Flagstar Bancorp Inc reported its fourth quarter and fully 2013 financial results. Among other things, Flagstar Bancorp Inc reported that is Net Loss of $374.81 million in 2010 turned into a Net Income of $261.20 million in 2013. Shares of Flagstar Bancorp Inc (NYSE: FBC) rose from $12.73 per share in April 2013 to as high as $22.57 per share in February 2014.

On August 26, 2014, Flagstar Bancorp, Inc., the holding company of Flagstar Bank, FSB (the "Bank"), announced that the Bank has commenced discussions with the Consumer Financial Protection Bureau, or CFPB, related to alleged violations of various federal consumer financial laws arising from the Bank's loss mitigation practices and default servicing operations dating back to 2011. Flagstar Bancorp Inc said that the Bank previously provided the CFPB with documents and other information concerning the Bank’s loss mitigation practices and default servicing operations in response to Civil Investigative Demands received from the CFPB. Shares of Flagstar Bancorp Inc declined from $18.50 per share on August 26, 2014 to as low as $17.26 per share on August 29, 2014 and continued to decline to as low as $17.00 per share on September 4, 2014.