BRBS.US
id: 904
Blue Ridge Bankshares (BRBS) Investor Settlement
The court has approved the settlement.
$2,500,000
Cash SettlementE.D. New York
Court1:23-cv-08944
Case number03/10/2023
Class period Start10/31/2023
Class period EndBlue Ridge ($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 Type
US Securities Class Action
Case Status
Preliminary Approved 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
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
How much will my payment be?
What is 11th Estate?