KlaymanToskes Offers FINRA Arbitration as an Additional Recovery Option for Investors with Losses in New York Community Bancorp
NEW YORK, NY / ACCESSWIRE / March 1, 2024 / National investment loss attorneys KlaymanToskes encourages New York Community Bancorp (NYSE:NYCB) investors who suffered losses of $100,000 or more as a result of a recommendation by their broker/investment advisor to contact the firm immediately at 888-997-9956. Investors with self-directed accounts who did not rely on the advice of a financial advisor are not eligible for our representation.
KlaymanToskes is investigating brokerage firms that recommended positions in New York Community Bancorp ("NYCB") and misrepresented or failed to disclose known risks to investors. Brokerage firms that recommended large, concentrated or margined positions in NYCB may be liable for investor losses. Investment portfolios holding large concentrated stock positions carry significant downside risks. Additionally, brokerage firms have a responsibility to provide customers with risk management strategies for large, concentrated, and margined positions.
On January 31, 2024, New York Community Bancorp disclosed a net loss of $252 million for the fourth quarter of 2023. The loss was reportedly due to a $552 million provision for loan losses, which was primarily attributable to "higher net charge-offs". NYCB also disclosed it would cut its quarterly dividend from $0.17 to $0.05 per share. On this news, the price of NYCB's stock fell over 38% from $10.44 to $6.47 per share during intraday trading on January 31, 2024.
On February 5, 2024, Bloomberg reported based on "people with direct knowledge of the matter," that it was "mounting pressure from a top US watchdog" which "led to" New York Community Bancorp's "surprise decision to slash its dividend and stockpile cash in case commercial real estate loans [went] bad." Upon this news, the price of New York Community Bancorp's stock fell by 22% from $5.40 to $4.20 per share.
A new filing issued yesterday, February 29 2024, reported that the company disclosed that its fourth-quarter net loss for 2023 was amended to $2.7 billion, over $2 billion worse than originally reported. Additionally the company announced that its CEO has resigned, and as a result, New York Community Bancorp shares plummeted by an additional 23% today, from $4.77 to $3.66 per share.
According to a class action complaint filed against NYCB, the company failed to disclose to investors that it was experiencing higher net charge-offs and deterioration in its office portfolio, and that as a result, NYCB was reasonably likely to incur higher loan losses.
Investors should know that class-actions may take many years to resolve, and that payouts are generally heavily undervalued. Accordingly, investors should consider all their legal options, including filing a securities arbitration claim with the Financial Industry Regulatory Authority (FINRA), against the brokerage firm who recommended the purchase. A FINRA arbitration claim may result in a greater and additional recovery.
Investors that suffered losses in excess of $100,000 should immediately contact attorney Lawrence L. Klayman, Esq. for a free and confidential consultation at 888-997-9956 or lawrence@klaymantoskes.com to discuss recovery options. We do not collect attorneys fees unless we are able to obtain a financial recovery for you.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Contact
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com
SOURCE: KlaymanToskes, P.A.
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