Bancorp Investors Urged to Participate in Class Action Lawsuit

Investors in The Bancorp, Inc. (NASDAQ: TBBK) are being encouraged to explore their legal rights regarding a class action lawsuit. This case targets those who purchased the company’s securities between January 25, 2024, and March 4, 2025, with a deadline to file a lead plaintiff motion set for May 16, 2025. Legal consultations are provided at no cost.

Key Allegations Against Bancorp

A significant development arose on March 21, 2024, when Culper Research published a report alleging substantial risks associated with Bancorp’s real estate bridge loans (REBLs). The report asserted that many loans within the portfolio were sourced from high-risk borrowers, drawn by unrealistic promises of effortless income and quick wealth accumulation. Critically, it also accused the company of significantly understating potential defaults and losses, citing inadequate loan loss reserves of just $4.7 million, representing merely 0.24% of the REBL portfolio.

Market Reactions and Stock Performance

• Following the release of the report, Bancorp’s stock experienced a sharp decline, dropping $3.63 (10.15%) to close at $32.12 per share on March 21, 2024, amid significant trading volume.
• On October 24, 2024, the company reported its Q3 earnings, highlighting a net income of $51.5 million. However, this figure was partly influenced by adjustments in credit loss provisions for at-risk REBL loans, which diminished net income by $1.5 million after taxes. The stock responded negatively, declining $7.95 (14.47%) the following day, reaching $47.01 per share.
• On March 4, 2025, Bancorp announced that its financial statements from 2022 to 2024 should “no longer be relied upon.” This declaration followed an internal review concerning potential issues in its consumer fintech loan accounting. Subsequently, the stock fell $2.34 (4.38%), closing at $51.25 per share on March 5, 2025.

Legal Support Available for Investors

Investors who are interested in learning more or who believe they have suffered losses from investing in Bancorp securities during the specified period are encouraged to reach out to attorney Lesley F. Portnoy for a complimentary case evaluation. Direct contact can be made via phone at 310-692-8883 or through email at le****@********aw.com.

About the Portnoy Law Firm

The Portnoy Law Firm has a strong history of advocating for investors in similar cases, with over $5.5 billion recovered on behalf of aggrieved parties. The firm’s founding partner, Lesley F. Portnoy, is admitted to both the California and New York Bars and is dedicated to holding corporations accountable for their actions.