Robbins Umeda LLP Announces the Filing of a Class Action Lawsuit Against Wilshire Bancorp, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, announces that a class action lawsuit has been filed on behalf of all persons or entities who purchased common stock of Wilshire Bancorp, Inc. (NASDAQ: WIBC) between March 15, 2010 and March 16, 2011 (the “Class Period”).
WIBC is the holding company for Wilshire State Bank, a California state-chartered bank that offers a range of financial products and services. WIBC was founded in 1980, and is headquartered in Los Angeles.
The lawsuit alleges that during the Class Period, WIBC violated federal securities laws by issuing material misrepresentations to the investing public concerning its business, operations, and prospects. Specifically, the complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that the company: (1) had deficiencies in its underwriting, origination, and renewal processes and procedures; (2) was not adhering to its underwriting policies; and (3) lacked adequate internal and financial controls.
On March 16, 2011, WIBC disclosed that it had conducted an internal investigation and discovered a significant deficiency in the operating effectiveness of loan underwriting, approval, and renewal processes for loan originations and asset sales associated with a former loan officer. Further, WIBC disclosed that these processes lacked effective supervision and oversight, and that the company’s operating efficiencies were hindered by the former chief executive officer and other management personnel.
As a result of this news, on March 17, 2011, WIBC shares declined to $0.54, or more than 9%, and the next day, WIBC shares declined another $0.42, or 7.97%, to close at $4.85.
If you purchased WIBC stock during the Class Period, you have until May 28, 2011, to move for lead plaintiff. To discuss your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.