Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against PacWest Bancorp (PACW)
NEW YORK, Sept. 13, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired PacWest Bancorp (“PacWest” or the “Company”) (NASDAQ: PACW) securities between February 28, 2022 and May 3, 2023, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) PacWest had understated the impact of interest rates on PWB, a smaller bank with excessive concentration in specific industries; (2) accordingly, PacWest had overstated the stability and/or sustainability of its deposit base; and (3) as a result, PacWest was exceptionally vulnerable to excessive deposit flows and/or a liquidity crisis.
The Complaint alleges that on May 3, 2023, Bloomberg published an article entitled Regional Banks Sink as PacWest Weighs Strategic Options, stating that “PacWest Bancorp led a renewed slide in regional banks after a report that it’s weighing strategic options including a sale heightened concerns that the turmoil engulfing smaller lenders is far from over.” The Complaint further alleges that on the same day, Forbes published an article titled PacWest Stock Falls 39% After Federal Reserve’s Latest Interest Rate Hike which stated that “PacWest has been considering a breakup or capital raise.” On this news, the price of PacWest stock fell more than 44%.
The Complaint further alleges that on May 11, 2023, PacWest revealed that “[d]uring the week ended May 5, 2023, our deposits declined approximately 9.5%, with a majority of that decline occurring on May 4th and May 5th after the news reports on the afternoon of May 3rd.” On this news, the price of PacWest stock fell nearly 23%.
Investors who purchased or otherwise acquired shares of PacWest should contact the Firm prior to the November 10, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
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