A lawsuit was filed on behalf of investors in First Republic Bank (NYSE: FRC) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 05/09/2023 -- An investor, who purchased NYSE: FRC shares, filed a lawsuit against First Republic Bank over alleged violations of Federal Securities Laws.
Investors who purchased shares of First Republic Bank (NYSE: FRC) have certain options and for certain investors are short and strict deadlines running. Deadline: June 23, 2023. NYSE: FRC investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
San Francisco, CA based First Republic Bank, together with its subsidiaries, provides private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. On October 14, 2022, First Republic Bank announced its third quarter 2022 financial results, reporting that the Company's net interest income growth had slowed to 20.6% year-over-year (down from 24.1% year-over-year growth the prior quarter) and its net interest margin ("NIM") had plummeted to 2.71% (down from 2.80% the prior quarter). First Republic Bank attributed the decrease in the Company's NIM to "average funding costs increasing more rapidly than the offsetting increase in the average yields on interest-earning assets."
On March 13, 2023, First Republic Bank stock declined on speculation that the bank may not have sufficient liquidity, even after it secured emergency funding from other institutions. Despite the funding, Raymond James downgraded the stock, stating the risk of deposit outflows facing First Republic. In downgrading the stock, Raymond James commented, "[d]espite the added liquidity sources, we believe deposit balances will remain under pressure in the immediate near term. While we believe the bank received some deposit inflows on Thursday during the bank run at SVB, additional panic among large depositors may have driven deposit balances lower since Thursday."
Shares of First Republic Bank (NYSE: FRC) declined to as low as $11.52 per share on March 20, 2023.
The plaintiff claims that between January 14, 2021, and March 14, 2023, the defendants misrepresented the strength of First Republic's balance sheet, liquidity, and position in the market, that among other things, Defendants understated and concealed the magnitude of the risks facing the Company's business model that would result from any decision by the Federal Reserve System raising the federal funds rate, thereby undermining the value of the Company's loan and securities portfolios and liquidity, and that as a result of Defendants' misrepresentations and omissions, First Republic securities traded at artificially inflated prices between January 14, 2021, and March 14, 2023.
Those who purchased shares of First Republic Bank (NYSE: FRC) have certain options and should contact the Shareholders Foundation.
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