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TBBK.US
id: 1529

The Bancorp ($TBBK) Misleading Loan Risks and Accounting Issues Case

D. Delaware
Court
1:25-cv-00326
Case number
01/25/2024
Class period Start
03/04/2025
Class period End
05/13/2025
Lead Plaintiff motion deadline
  • $TBBK investors filed a lawsuit against The Bancorp for concealing the risk of defaults in its real estate bridge loan (REBL) portfolio and accounting weaknesses.
  • After admitting financial statement errors and disclosing auditor concerns on March 4, 2025, $TBBK fell 4.38%.
  • $TBBK investors can join this case to stay updated on potential recovery.
Case Details:

On March 4, 2025, after the market closed, The Bancorp ($TBBK) announced that investors could no longer rely on its financial statements from 2022 to 2024 due to accounting errors and auditor concerns.

The company admitted that its auditors refused to approve its financial statements, citing problems with how Bancorp accounted for credit losses on its consumer fintech loans. As a result, Bancorp delayed its annual report and began reviewing its internal controls, raising concerns about serious financial reporting weaknesses.

This came after months of warnings about hidden risks in The Bancorp’s real estate bridge loan (REBL) portfolio. On March 21, 2024, Culper Research released a report claiming that many of the apartment buildings backing these loans were in poor condition, with high vacancies and structural issues. The report alleged that Bancorp’s reserves for loan losses were dangerously low, putting the company at risk for major write-offs.

Despite these concerns, Bancorp assured investors that its REBL loans had "no substantial risk of default or loss." However, the company later increased its loan loss provisions and admitted it had added new credit risk factors, confirming the issues raised by Culper Research.

When Bancorp finally disclosed its financial reporting issues on March 4, 2025, $TBBK stock fell 4.38%.

Based on these events, $TBBK investors filed a lawsuit against The Bancorp, claiming the company:

  • It failed to properly account for credit losses on its consumer fintech loans.
  • It misled investors about the reliability of its financial statements, which its auditors later refused to approve.
Investors believe The Bancorp knowingly concealed financial risks, leading to significant stock losses when the truth was revealed.
Case Status
Lead Plaintiff Appointment
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
03/04/2025
Filing date
03/14/2025
Lead Plaintiff Deadline
05/13/2025

The Bancorp Inc

The Bancorp, Inc. operates as the financial holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit...

    Ticker
    TBBK.US
    ISIN
    US05969A1051
    CIK
    0001258754
    Sector
    Financial Services
    Industry
    Banks - Regional
    Country
    USA
    Address
    409 Silverside Road, Wilmington, DE, United States, 19809