NEW YORK, April 6, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed against Community Bancorp of New York (NYSE:), Inc. (NYCB or the Company) (NYSE: NYCB) in the United States District Court for the Eastern District of New York on behalf of all persons and entities who purchased or otherwise acquired NYCB securities between March 1, 2023 and January 30, 2024, both dates inclusive (the Class Period). Investors have until April 8, 2024 to apply to the Court to be appointed lead plaintiff in the lawsuit.
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NYCB is a large commercial real estate lender in the New York City market area, where it specializes in rent-regulated non-luxury condominiums. NYCB is engaged in several national businesses, including multifamily lending, mortgage origination and servicing, and warehouse lending. The Company’s loans and specialty financing leases are generally made to large corporate borrowers participating in stable industries nationwide, and its warehouse loans are made to mortgage lenders throughout the country.
On March 20, 2023, the Company entered into a purchase and assumption agreement to acquire certain assets and assume certain liabilities of Signature Bridge Bank, N.A. (Signature).
On January 31, 2024, before the market opened, NYCB announced its fiscal 2023 fourth quarter financial results. The Company reported a fourth quarter net loss of $252 million due to a $552 million provision for loan losses, primarily attributable to higher net write-offs and a significant increase in ACL [allowance for credit losses] coverage ratio. Additionally, the Company announced that it will cut its quarterly dividend to $0.05 per common share. The Company further explained that these actions were necessary improvements after NYCB passed th[e] important threshold [of becoming a $100 billion bank] ahead of schedule following the signature transaction. Exceeding this $100 billion threshold subjected the NYCB to heightened banking standards and requirements.
On this news, NYCB’s stock price fell $3.90, or 37.57%, to close at $6.47 per share on January 31, 2024, on unusually high trading volume.
According to the filed complaint, throughout the class period, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company was experiencing increased net charge-offs and a deterioration in its office portfolio; (2) that, as a result, NYCB was reasonably likely to suffer increased loan losses; (3) that, as a result of the foregoing and NYCB’s status as a Category IV bank, the Company was reasonably likely to increase its provision for credit losses; (4) that the Company’s financial results would be adversely affected; (5) that, to preserve capital, the Company would reduce the quarterly common dividend to $0.05 per common share; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired shares of NYCB and suffered a loss, are a long-term shareholder, have information, would like to know more about these statements, or have questions regarding this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives, and other complex disputes in state courts and feds across the country. For more information about the company, visit www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.
Contact information:
Bragar Eagel and Squire, PC
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com