Robbins Arroyo LLP: First NBC Bank Holding Company (FNBC) Misled Shareholders According to a Recently Filed Class Action
May 10, 2016 (San Diego, CA & New Orleans, LA) – Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against First NBC Bank Holding Company (NASDAQGS: FNBC) in the U.S. District Court for the Eastern District of Louisiana. The plaintiff brings the complaint on behalf of all purchasers of First NBC Bank securities between May 10, 2013 and April 8, 2016, for alleged violations of the Securities Exchange Act of 1934 by First NBC Bank’s officers and directors. First NBC Bank Holding Company operates a bank holding company for First NBC Bank that provides a range of financial services for businesses, institutions, and individuals.
First NBC Bank Accused of Using Improper Accounting Methods
According to the complaint, on May 10, 2013, First NBC priced its Initial Public Offering at $24 per share, selling 4,791,667 shares to the public. In its registration statement, First NBC claimed that its business model was focused on a traditional community bank structure guided by disciplined risk management. In subsequent press releases and filings with the U.S. Securities and Exchange Commission, the company reported positive financial results and attested that it disclosed any material changes to its internal control over financial reporting. The complaint alleges that First NBC’s statements about its financial condition were misleading because it failed to disclose that it was improperly accounting for its Federal and State Historic Rehabilitation tax credit entities and that the carrying value of its investments in tax credits on its books was overstated. Further, First NBC allegedly lacked effective internal and reporting controls, and the financial statements in its registration statement were not prepared in accordance with Generally Accepted Accounting Principles.
On August 11, 2015, First NBC filed a Notification of Late Filing, stating that it had identified errors in its accounting for certain of its investments in tax credit entities. On February 1, 2016, First NBC admitted that its direct exposure to the oil and gas industry had increased because it issued more loans to exploration and production companies. It further announced that its earnings for the fourth quarter of 2015 and fiscal year 2015 had significantly underperformed analysts’ expectations due to the company having taken an $8.2 million tax credit impairment. Finally, on April 8, 2016, First NBC disclosed that the consolidated financial statements for the fiscal years 2011-2014, and the interim periods within fiscal years 2013-2015—the company’s entire reporting history as a publicly traded company—needed to be restated and should no longer be relied upon. Since the above revelations seeped into the market, First NBC stock fell over 38% to close at $18.65 per share on April 11, 2016.
First NBC Bank 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.
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