Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In First Republic To Contact Him Directly To Discuss Their Options
New York, New York--(Newsfile Corp. - June 23, 2023) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against First Republic Bank ("First Republic" or the "Company") (NYSE: FRC) (OTC Pink: FRCB) and reminds investors of the June 23, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in First Republic stock or options between January 14, 2021, and April 27, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/FRC.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
The Complaint alleges that Defendants made false and misleading statements and failed to disclose material adverse facts about First Republic's business and operations. Specifically, Defendants: (i) misrepresented the strength of the Company's balance sheet and liquidity position, while also understating the significant pressure rising interest rates posed First Republic's business model; (ii) misrepresented the strength of the Company's ability to deliver consistent results across different interest rate environments, the diversity of its deposit base, and its ability to generate NII growth and maintain stable NIM.
On October 14, 2022, investors began to learn the truth about the risks the Company faced from the Federal Reserve's increasing the federal funds rate when the Company announced disappointing Q3 2022 financial results, and reported that its NII growth slowed to 20.6% year-over-year (down from 24.1% year-over-year growth the prior quarter) and its NIM plummeted to 2.71% (down from 2.8% the prior quarter). Defendants attributed the NIM decrease to "average funding costs increasing more rapidly than the offsetting increase in the average yields on interest-earning assets."
On January 13, 2023, First Republic announced its Q4 and FY 2022 financial results, including a Q4 decrease in NII, stalled NII growth at 4.9% year-over-year, and NIM of just 2.45%.
Then, on March 12, 2023, First Republic announced it obtained $10 billion of additional borrowing capacity from the Fed and JPMorgan Chase. Three days later, S&P downgraded its ratings of First Republic securities, citing the elevated risk of deposit outflows. Fitch followed suit the same day with Moody's also downgrading on March 17, 2023.
On April 24, 2023, First Republic revealed that its total deposits declined 41% in Q1 2023. On April 28, 2023, media outlets reported that the FDIC was in talks with several banks for bids on First Republic should it go into receivership. Finally, on May 1, 2023, the Department of Financial Protection and Innovation announced that it had taken over First Republic and that FDIC officials had accepted JPMorgan's bid to assume deposits and substantially all assets of First Republic.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding First Republic's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/171150
Original Source of the original story >> First Republic Shareholder Action Reminder
