Safirstein Metcalf LLP Announces That A Class Action Lawsuit Has Been Filed Against Banc of California, Inc. - BANC

NEW YORK, Jan. 24, 2017 -- Safirstein Metcalf LLP announces that a class action lawsuit has been filed on behalf of purchasers of Banc of California, Inc. securities (NYSE:BANC) from October 29, 2015 through January 20, 2017, both dates inclusive (the “Class Period”). The lawsuit seeks to recover damages for Banc of California investors under the federal securities laws.

If you purchased Banc of California securities during the class period, and would like more information about getting involved in the Banc of California Shareholder Class Action, please contact Sheila Feerick at 1-800-221-0015, or email [email protected].

If you wish to serve as lead plaintiff, you must move the Court no later than March 24, 2017.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

According to the complaint,  throughout the Class Period, defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) Banc of California had extensive ties to an alleged “fraudster” named Jason Galanis (“Galanis”); (2) Banc of California’s ties to Galanis created substantial regulatory risk, given Galanis’ history; (3) the revelation of Galanis’ ties to Banc of California could cause a substantial decline in the market price of the Banc of California’s securities; (4) Banc of California allegedly misled investors concerning its connections to Galanis; and (5) as a result, defendants’ positive statements about Banc of California’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On January 23, 2017, Banc of California announced the resignation of its CEO, Steven A. Sugarman, and that the United States Securities and Exchange Commission had opened an investigation into whether the Company had misled investors in its response to an October 2016 Seeking Alpha report disclosing a connection between the Banc of California and an alleged fraudster named Jason Galanis.

Following this news the Company’s shares fell $1.50 per share, or nearly 10%, to close on January 23, 2017 at $14.65 per share, on unusually high volume of over 6 million shares.

About Safirstein Metcalf LLP

Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection.  All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.

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