SAN FRANCISCO, May 01, 2023 (GLOBE NEWSWIRE) — Hagens Berman is pushing First Republic Bank FRC Investors who have suffered losses of $1 million or more Submit your losses now.

school lesson: January 14, 2021 – March 14, 2023
Deadline for lead plaintiff: June 23, 2023
Visit: www.hbsslaw.com/investor-fraud/FRC
Contact a lawyer now: FRC@hbsslaw.com
844-916-0895

First Republic Bank (FRC) class action lawsuit alleging securities fraud:

The litigation focuses on First Republic Bank’s repeated assurances that its capital and liquidity position is very strong and that its capital remains well above the regulatory threshold for well-capitalized banks.

According to the complaint, the defendants (1) misrepresented the strength of First Republic’s balance sheet and liquidity position while underestimating the significant pressure rising interest rates were putting on the bank’s business model, and (2) misrepresented the strength of the bank’s ability to deliver consistent results in varied interest rate environments, the diversity of the Bank’s deposit base and its ability to generate net interest income growth and maintain stable net interest margins.

Investors began to get the truth on October 14, 2022, when First Republic reported disappointing financial results for the third quarter of 2022, revealing that net interest income growth had slowed and the net interest margin had declined sharply.

Defendants further alleged that First Republic’s deposit base is “strong and well diversified” and that its “liquidity position remains very strong.”

Despite these assurances, First Republic announced on March 12, 2023 that it would bolster its finances with additional funding from the Federal Reserve and JPMorgan Chase.

Then, on March 15, 2023, the financial times reported that S&P global ratings downgraded the First Republic’s credit rating four notches to Junk (BB+), largely because the rating agency concluded that about 68% of the bank’s total deposits (the portion above…