Blue Ridge Bankshares (BRBS) Investor Settlement
Blue Ridge ($BRBS) has agreed to settle $2.5M with investors to resolve claims of improper loan classifications and inaccurate financial reports.
In 2023, Blue Ridge Bankshares was accused of misclassifying millions of dollars in non-performing loans. Following this, $BRBS dropped over 33%, and Blue Ridge faced a lawsuit from investors.
February 3, 2023 – Blue Ridge filed its 2022 annual report, which initially did not disclose issues with misclassified troubled loans.
October 31, 2023 – Blue Ridge announced financial restatements, revealing errors in loan reporting, causing $BRBS to fall 33.65%.
December 5, 2023 – Investors filed a lawsuit, alleging the company hid financial problems by covering up risky loans.
November 2024 – Blue Ridge agreed to a $2.5M settlement to resolve all claims.
In February 2023, Blue Ridge filed its 2022 annual report, with strong financial performance.
However, on October 31, 2023, the company announced that its financial statements needed to be restated due to errors in loan reporting.
It was revealed that Blue Ridge concealed millions of dollars in high-risk loans, including a $37.5M loan to an eSports company nearing bankruptcy and a $23.7M loan tied to struggling educational institutions.
Following this disclosure, $BRBS fell 33.65%.
After that, in December 2023, Blue Ridge was sued by investors for misleading them about its financial issues by hiding high-risk loans.
Blue Ridge ($BRBS) has agreed to settle $2.5M with investors to resolve claims of improper loan classifications and inaccurate financial reports.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons who purchased the publicly traded common stock of Blue Ridge Bankshares between February 3, 2023 and October 31, 2023, both dates inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
The plaintiffs’ estimates suggest that if all potentially damaged shares are claimed, the average recovery would be approximately $0.38 per share before fees and costs. After deductions, that figure could be closer to $0.24 per share. If fewer investors file claims—as is typically the case—the average per-share payout could be higher.
11th Estate is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout
2. Audit your claim to ensure you receive the maximum possible payout
3. File the claim with the settlement administrator
4. Correspond with the settlement administrator to resolve any issues
5. Deliver the payout directly to your brokerage account
There is no upfront cost for our services; we deduct a 20% commission from the recovered amount as our fee.