PacWest Bancorp
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired PacWest Bancorp (“PacWest” or the “Company”) (NASDAQ: PACW) securities during the period from February 28, 2022 through May 3, 2023, inclusive (the “Class Period”). Investors have until November 10, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On May 3, 2023, Bloomberg published an article stating that PacWest plunged 60% in postmarket trading and shared a negative outlook on other regional/small banks’ survival with diving share prices and rising interest rates. Later, Forbes published an article stating that PacWest was contemplating putting itself up for sale and share price was down following news that the Bank’s cash and available liquidity exceeded uninsured deposits. On this news, the price of PacWest shares declined by $3.25 per share, or approximately 50.62%, from $6.42 per share to close at $3.17 on May 4, 2023.
Then on May 11, 2023, PacWest disclosed in a quarterly report (Form 10-Q) that it had lost a significant percentage of deposits after the publication of the Bloomberg report. On this news, the price of PacWest shares declined by $1.38 per share, or approximately 22.7%, from $6.08 per share to close at $4.70 on May 11, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) PacWest had understated the impact of interest rate hikes on PWB, a smaller bank with excessive concentration in specific industries; (ii) accordingly, the Company had overstated the stability and/or sustainability of its deposit base; and (iii) as a result, PacWest was exceptionally vulnerable to excessive deposit flows and/or a liquidity crisis.
On May 3, 2023, Bloomberg published an article stating that PacWest plunged 60% in postmarket trading and shared a negative outlook on other regional/small banks’ survival with diving share prices and rising interest rates. Later, Forbes published an article stating that PacWest was contemplating putting itself up for sale and share price was down following news that the Bank’s cash and available liquidity exceeded uninsured deposits. On this news, the price of PacWest shares declined by $3.25 per share, or approximately 50.62%, from $6.42 per share to close at $3.17 on May 4, 2023.
Then on May 11, 2023, PacWest disclosed in a quarterly report (Form 10-Q) that it had lost a significant percentage of deposits after the publication of the Bloomberg report. On this news, the price of PacWest shares declined by $1.38 per share, or approximately 22.7%, from $6.08 per share to close at $4.70 on May 11, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) PacWest had understated the impact of interest rate hikes on PWB, a smaller bank with excessive concentration in specific industries; (ii) accordingly, the Company had overstated the stability and/or sustainability of its deposit base; and (iii) as a result, PacWest was exceptionally vulnerable to excessive deposit flows and/or a liquidity crisis.