CASES
Wilshire Bancorp, Inc.
Class Period: Mar 15, 2010 to Mar 16, 2011
Lead Plaintiff Deadline: May 31, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Wilshire Bancorp, Inc. ("WIBC" or the "Company") on behalf of all persons who purchased securities of the Company from March 15, 2010, through March 16, 2011. This case has been filed in the United States District Court of USDC - California (Central).
The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Wilshire Bancorp, Inc.'s ("WIBC" or the "Company") business, operations and prospects were materially false and misleading. Specifically, the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company had deficiencies in its underwriting, origination, and renewal processes and procedures; (2) that the Company was not adhering to its underwriting policies; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the above, the Company's statements were materially false and misleading at all relevant times.
On March 16, 2011, WIBC disclosed that the Company had conducted an internal investigation with assistance of outside independent professional firms and the Company's internal audit department and discovered a significant deficiency in the operating effectiveness of loan underwriting, approval and renewal processes for those loan originations and asset sales associated with a former loan officer. Further, the Company disclosed that these processes lacked effective supervision and oversight and that the Company's operating efficiencies were hindered by the former chief executive officer and other management personnel.
As a result of this news, shares of WIBC declined $0.54 per share, more than 9%, to close on March 17, 2011, at $5.27 per share, on unusually heavy volume. The following day, WIBC shares further declined another $0.42, or 7.97%, to close on March 18, 2011, at $4.85.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.