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BRBS.US
id: 904

Blue Ridge Bankshares (BRBS) Investor Settlement

The settlement terms have been submitted to the court for approval.
$2,500,000
Cash Settlement
E.D. New York
Court
1:23-cv-08944
Case number
03/10/2023
Class period Start
10/31/2023
Class period End
Blue Ridge ($BRBS) has agreed to settle $2.5M with investors to resolve claims of improper loan classifications and inaccurate financial reports.

Outline


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.


Timeline

  • 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.

Background


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.


What Can Investors Expect Now?


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.
Case Status
Stipulative Settlement
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.38
Filing date
12/05/2023
Lead Plaintiff Deadline
02/05/2024
Plaintiffs
Russell Hunter
Attorneys
The Rosen Law Firm, P.A. (New York, NY)
Defendants
Brian K. Plum, Judy C. Gavant, G. William Beale
Administrator
Strategic Claims Services
Settlement agreement date
2025-02-04
Attorney fee
$933,333
Trades matching type
FIFO

Frequently Asked Questions

Blue Ridge Bankshares Inc

Blue Ridge Bankshares, Inc. operates as a bank holding company for the Blue Ridge Bank, National Association that provides commercial and consumer banking, and financial services. It operates throu...

    Ticker
    BRBS.US
    ISIN
    US0958251052
    CIK
    0000842717
    Sector
    Financial Services
    Industry
    Banks - Regional
    Country
    USA
    Address
    1801 Bayberry Court, Richmond, VA, United States, 23226