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Business Wire 18-Sep-2023 3:38 PM
Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired PacWest Bancorp (NASADAQ: PACW) securities between February 28, 2022 and May 3, 2023. PacWest operates as a holding company for its wholly-owned subsidiary, Pacific Western Bank ("PWB"), a regional bank based in Los Angeles, California.
What is this Case About: PacWest Bancorp (PACW) Misled Investors Regarding the Impact of Interest Rate Hikes on Pacific Western Bank
According to the complaint, during the class period, defendants failed to disclose to investors that: (i) PacWest had understated the impact of interest rate hikes on PWB, a smaller bank with excessive concentration in specific industries; (ii) accordingly, the Company had overstated the stability and/or sustainability of its deposit base; and (iii) as a result, PacWest was exceptionally vulnerable to excessive deposit flows and/or a liquidity crisis.
On March 10, 2023, PacWest assured investors of its financial strength. However, just two months later, on May 3, 2023, Bloomberg published an article stating that "PacWest Bancorp led a renewed slide in regional banks after a report that it's weighing strategic options including a sale heightened concerns that the turmoil engulfing smaller lenders is far from over." Shortly thereafter, Forbes published an article entitled "PacWest Stock Falls 39% After Federal Reserve's Latest Interest Rate Hike." Following the publication of the Bloomberg and Forbes articles, PacWest's stock price fell $2.84 per share, or 44.17%, to close at $3.59 per share on May 4, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against PacWest Bancorp. Shareholders who want to act as lead plaintiff for the class must file their motion for lead plaintiff by November 10, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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