In re BofI Holding, Inc. Securities Litigation.

Axos agreed to pay $14.1 million to settle a securities class action lawsuit accusing the Company of deceiving investors about business, operations and compliance policies.

The Complaint alleged that throughout the Class Period, the Company made false and misleading statements or failed to disclose that:

• the Company’s internal controls were frequently disregarded;

• Bank of Internet’s borrowers included foreign nationals who should have been off-limits under federal anti-money-laundering laws;

• many Bank of Internet accounts lacked required tax identification numbers;

• Bank of Internet fired an internal auditor who raised the foregoing issues to management and to federal regulators;

After several years of court proceedings, Axos agreed to settle with investors to avoid further litigation.