SAN DIEGO, May 12, 2023 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all individuals and entities that purchased or otherwise acquired First Republic Bank FRC securities between January 14, 2021 and March 14, 2023. First Republic is a state-registered bank and trust company located in California offering private banking, private business banking and private wealth management.
What is it about in this case: First Republic Bank (FRC) made false and misleading claims about its ability to achieve consistent growth and performance through diversification
According to the Complaint, the defendants failed to disclose material negative facts about the Company’s business and operations during the class action. In particular, the defendants misrepresented the strength of the company’s balance sheet and cash position while underestimating the significant pressure that rising interest rates are putting on First Republic’s business model. Defendants also misrepresented the strength of the company’s ability to deliver consistent results in varied interest rate environments, the diversity of the company’s deposit funding base, and the company’s ability to generate net interest income growth and maintain a stable net interest margin.
On October 14, 2022, following the announcement of disappointing financial results for the third quarter of 2022, First Republic stock fell $22.14 per share, or more than 16%, to close at $112.59 per share.
Then, on March 10, 2023, SVB Financial Group, the parent company of Silicon Valley Bank and a peer bank of First Republic, collapsed, raising concerns among investors about First Republic’s ability to withstand the interest rate environment and remain insolvent. As a result of this news, the price of First Republic common stock fell $83.79 per share, or more than 72%, over three trading sessions to close at $31.21 per share on March 13, 2023.
Despite statements from First Republic and its executives confirming the stability of…