SAN DIEGO & IRVINE, Calif.--(BUSINESS WIRE)-- Shareholder rights law firm Robbins Arroyo LLP announces that Opus Bank (NasdaqGS: OPB) has announced the proposed settlement of the class action lawsuit filed against the bank by its shareholders. The complaint was filed in the U.S. District Court for the Central District of California for alleged violations of the Securities Exchange Act of 1934 by Opus's officers and directors. Opus provides various banking products, services, and solutions for small to mid-sized companies, entrepreneurs, real estate investors, professionals, and high net worth individuals.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/shareholders-rights-blog/opus-bank-nov-2017/
Opus Settles Class Action for $17 Million
On November 10, 2017, Opus announced that it had signed a memorandum of understanding to settle the class action lawsuit filed against the bank by its shareholders for $17 million. The lawsuit accused Opus of misrepresenting its financial condition in the company's press releases and filings with the U.S. Securities and Exchange Commission by repeatedly touting its strong growth and performance and predicting a confident outlook for the company. In reality, the company lacked adequate internal controls over accounting and financial reporting and its loans were of poor quality. As a result, Opus had to recognize large charge-offs associated with many of its loans. When Opus disclosed on October 17, 2016 that earnings for the third quarter of 2016 would include a $0.59 per diluted share impact from loan charge-offs and was expected to result in a net loss of approximately $0.05 per diluted share for the third quarter of 2016, Opus's stock price fell $7.25 per share, or 21%, to close at $27.20 per share on October 17, 2016.
Opus Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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Source: Robbins Arroyo LLP