NEW YORK, March 28, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against New York Community Bancorp, Inc. (“NYCB” or the “Company”) (NYSE: NYCB) and reminds investors of the April 8, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In NYCB To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $100,000 investing in NYCB stock or options between March 1, 2023 and February 5, 2024 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/NYCB.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) the Signature Bank acquisition would not be immediately accretive to New York Community Bancorp because it caused New York Community Bancorp to be required to comply with materially enhanced prudential standards, including, among other things, risk-based and leverage capital requirements, and liquidity standards, and required that New York Community Bancorp build capital, reinforce its balance sheet and strengthen its risk management processes; (ii) New York Community Bancorp failed to comply with the materially enhanced prudential standards; (iii) New York Community Bancorp overstated the quality of its commercial office loan assets; (iv) New York Community Bancorp was experiencing higher net charge-offs and deterioration in its commercial office portfolio than represented; (v) New York Community Bancorp was reasonably likely to incur higher loan losses because it was experiencing higher net charge-offs and deterioration in its commercial office portfolio; (vi) New York Community Bancorp was reasonably likely to be forced to increase its allowance for credit losses due to its status as Category IV bank; (vii) New York Community Bancorp's loan loss provisions were understated so it overstated quarterly earnings and/or understated quarterly losses; and (viii) New York Community Bancorp failed to have adequate internal risk or disclosure controls and procedures.
On January 31, 2024, New York Community Bancorp disclosed that it had recorded a $552 million provision for loan losses, up significantly from the $62 million reported just one quarter earlier, and that as a result, New York Community Bancorp had incurred a 4Q23 loss of $252 million, or $0.36 per share, down significantly from a profit of $0.27 per share Wall Street consensus estimate. New York Community Bancorp also disclosed it would cut its quarterly dividend from $0.17 to $0.05 per share. On this news, the price of New York Community Bancorp stock fell nearly 38%.
Then, on February 5, 2024, Bloomberg reported, citing "people with direct knowledge of the matter," that it had been "mounting pressure from a top US watchdog" that "led to" New York Community Bancorp's "surprise decision to slash its dividend and stockpile cash in case commercial real estate loans [went] bad." According to the Bloomberg article, "[t]he drastic financial moves . . . followed behind-the-scenes conversations with officials from the Office of the Comptroller of the Currency, the people said, asking not to be identified describing the confidential discussions." On this news, the price of New York Community Bancorp stock fell more than 22%.
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 NYCB’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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