Opus Bank (NASDAQ: OPB) Investor Securities Class Action Lawsuit 10/26/2016

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Company Name(s): 
Opus Bank
Case Name: 
Opus Bank Shareholder Class Action Lawsuit 10/26/2016
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: OPB
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/26/2016
Class Period Begin: 
01/26/2015
Class Period End: 
01/30/2017
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
12/26/2016
Date Settled: 
03/12/2018
Settlement Amount: 
$17,000,000
Deadline to Participate in Settlement: 
07/10/2018
Settlement Notice: 
Settlement Proof: 
Summary: 

March 12, 2018 - The court preliminarily approved the settlement.

January 30, 2018 - Parties filed a stipulation of settlement.

June 23, 2017 - Defendants filed a motion to dismiss.

April 24, 2017 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Opus Bank (NASDAQ: OPB) common shares between January 26, 2015 and January 30, 2017. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between January 26, 2015 and January 30, 2017.

February 23, 2017 - Lead plaintiff and lead counsel were appointed.

October 26, 2016 - An investor in shares of Opus Bank (NASDAQ: OPB) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Opus Bank in connection with certain allegedly false and misleading statements made between July 28, 2014 and October 17, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Opus Bank (NASDAQ: OPB) common shares between July 28, 2014 and October 17, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between July 28, 2014 and October 17, 2016, the defendants made false and/or misleading statements and/or failed to disclose that certain of the company’s loans were of poor quality, that the company was over-representing the quality of the loans to the public, that, as such, the company failed to properly account for the loans in violation of Generally Accepted Accounting Principles (“GAAP”), that, as a result, the Company would be forced to recognize large charge-offs associated with the loans, that the Company lacked adequate internal controls over accounting and financial reporting, and that, as a result of the foregoing, defendants’ positive statements about Opus’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On October 17, 2016, Opus Bank announced earnings for the third quarter 2016, and disclosed that, “As part of the credit review process of impaired loans, new developments supported charge-offs being recognized on eight loan relationships through the allowance for loan losses at September 30, 2016. Charge-offs were recorded on these eight loan relationships, which have been impacting the provision for loan losses and earnings for the past eight quarters and include three of the same loan relationships that were discussed during Opus' second quarter 2016 earnings conference call. Charge-offs for the eight loan relationships totaled $38.8 million and had specific reserves of $16.7 million previously recorded. In addition, these charge-offs increased the reserve levels recorded against the remaining loan portfolio by $13.6 million as a result of higher loss factors incorporated into our allowance for loan losses methodology to reflect the charge-offs in the third quarter of 2016.”

Shares of Opus Bank (NASDAQ: OPB) dropped from $35.04 per share on October 14, 2016, to as low as $22.94 per share on October 21, 2016.