Robbins Arroyo LLP: Opus Bank (OPB) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Opus Bank (NASDAQGS: OPB) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Opus securities between July 28, 2014 and October 17, 2016, for alleged violations of the Securities Exchange Act of 1934 by Opus’s officers and directors. Opus Bank provides various banking products, services, and solutions for small to mid-sized companies, entrepreneurs, real estate investors, professionals, and high net worth individuals.
Opus Accused of Misrepresenting Its Financial Condition
According to the complaint, Opus issued several press releases and submitted multiple filings with the U.S. Securities and Exchange Commission touting the company’s accomplishments, stating, “Our performance included strong growth in loans with contribution from all lines of business, … strong growth in and improved quality of originated loan interest income, [and] meaningful growth and diversification of our loan origination pipeline,” among other things. In fact, at one point, Opus’s Chief Executive Officer and President predicted a confident outlook for the company, stating, “Our strong growth, record new loan fundings, high quality deposits, continued disciplined and unwavering approach to credit, strong capital ratios and scalable business have us confident in our prospects as we enter 2015.”
However, the complaint alleges that Opus officials failed to disclose: (1) that certain of the company’s loans were of poor quality; (2) that the company was over-representing the quality of the loans to the public; (3) that the company failed to properly account for the loans in violation of generally accepted accounting principles; (4) that, as a result, the company would be forced to recognize large charge-offs associated with the loans; and (5) that the company lacked adequate internal controls over accounting and financial reporting. On October 17, 2016, Opus issued a press release stating that earnings for the third quarter of 2016 will include a $0.59 per diluted share impact from loan charge-offs and is expected to result in a net loss of approximately $0.05 per diluted share for the third quarter of 2016. On this news, Opus’s stock price fell $7.25 per share, or 21%, to close at $27.20 per share on October 17, 2016.
Opus Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.