Robbins Umeda LLP Announces an Investigation of PrivateBancorp, Inc.
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at PrivateBancorp, Inc. (“PrivateBancorp” or the “Company”) (NASDAQ: PVTB). PrivateBancorp, through its subsidiaries, provides various business and personal financial services to middle-market commercial and commercial real estate companies, business owners, executives, entrepreneurs, and families in the United States. PrivateBancorp was founded in 1989 and is headquartered in Chicago, Illinois.
Robbins Umeda LLP’s investigation concerns whether the Company’s directors and officers damaged PrivateBancorp by causing or allowing it to issue improper statements regarding the Company’s business and financial results. Specifically, our investigation concerns whether certain of PrivateBancorp’s directors and officers misrepresented the quality of the Company’s loan portfolio generated by the Strategic Growth and Transformation Plan (“Growth Plan”) in order to achieve certain financial targets, including lucrative incentive awards for its employees.
On October 26, 2009, prior to the start of trading, the Company shocked investors by reporting third quarter 2009 earnings results that fell far short of expectations. Additionally, PrivateBancorp disclosed that its elevated levels of nonperforming loans were originated under the Growth Plan. Upon this news, PrivateBancorp’s value fell approximately 37%, or $7.00 per share, from a closing price of $18.94 per share on October 23, 2009, to a closing price of $11.94 per share on October 26, 2009.
If you are a shareholder of PrivateBancorp, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org.