Shareholders with losses of $250,000 or more are encouraged to contact the firm.
LOS ANGELES, May 18, 2023 /PRNewswire/ -- Glancy Prongay & Murray LLP ("GPM") announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against First Republic Bank ("First Republic" or the "Company") (NYSE: FRC).
Class Period: January 14, 2021 – March 14, 2023
Lead Plaintiff Deadline:June 23, 2023
If you wish to serve as lead plaintiff of the First Republic lawsuit, you can submit your contact information at www.glancylaw.com/cases/First-Republic-Bank/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On October 14, 2022, First Republic released its third quarter 2022 financial results, reporting a slowdown of the Company's net interest income growth to 20.6% year-over-year and a net interest margin decrease to 2.71%. The Company explained that the decrease was due to "average funding costs increasing more rapidly than the offsetting increase in the average yields on interest-earning assets." On this news, First Republic's stock price fell $22.14, or 16.4%, to close at $112.59 per share on October 14, 2022, thereby injuring investors.
Then, following the collapse of SVB Financial Group ("SVB") on March 10, 2023, First Republic investors began to question the Company's ability to withstand the interest rate environment and remain solvent. In response, First Republic's stock price fell $83.79, or 72.9%, to close at $31.21 per share on March 13, 2023.
Then, on March 13, 2023, several analysts downgraded their ratings of First Republic due to the risks of deposit outflows leading to increased funding costs, observing that the Company's "funding and liquidity profile has changed and represents a 'weakest link.'" On this news, First Republic's stock price fell $8.47, or 21.4%, to close at $31.16 per share on March 15, 2023, thereby injuring investors further.
The complaint filed alleges that, throughout the Class Period, Defendants misrepresented the strength of the Company's balance sheet and liquidity position, while also understating the significant pressure rising interest rates posed to First Republic's business model. Defendants also misrepresented the strength of the Company's ability to deliver consistent results across different interest rate environments, the diversity of the Company's deposit funding base, and the Company's ability to generate net interest income growth and maintain stable net interest margin, and as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on LinkedIn, Twitter, or Facebook.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View original content to download multimedia:https://www.prnewswire.com/news-releases/frc-investors-have-opportunity-to-lead-first-republic-bank-securities-fraud-lawsuit-301828207.html
SOURCE Glancy Prongay & Murray LLP
