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Featured Company News - Opus Bank Prepares to Settle Class-Action Lawsuit Filed by Shareholder for $17 Million

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LONDON, UK / ACCESSWIRE / November 13, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Opus Bank (NASDAQ: OPB), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=OPB. The Company announced on November 10, 2017, that it has signed a memorandum of understanding (MoU) to settle the class-action lawsuit filed against the Bank by its shareholder(s). The Bank has agreed to pay $17 million to end the lawsuit after both parties reached an agreement to settle the matter out of court. For immediate access to our complimentary reports, including today's coverage, register for free now at:


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Details of the settlement

In the matter of Schwartz versus Opus Bank putative class action lawsuit pending in the US District Court for the Central District of California, Opus Bank, and the shareholder(s) who filed the lawsuit have reached an agreement to settle the case after "negotiate in good faith". Opus Bank has agreed to pay $17 million for the same within 30 days from November 03, 2017. The settlement amount will be fully paid by the Bank's insurance carriers. Opus has indicated that the settlement will not have any impact on the "Bank's consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2017".

The MoU needs to be approved by the Court for it to be final. There is not guarantee that the MoU will be approved by the Court even if both parties have agreed to settle the matter. However, in case the settlement is approved by the Court, it will release the Bank from the claims of the lawsuit and put a stop to any future proceedings. The Bank has said that it would only provide further information on the matter once the Court reaches a decision.

The lawsuit

The lawsuit was filed against Opus in November 2016 by lead plaintiff Nancy Schwartz and other shareholders who had purchased the Bank's shares during the period between July 28, 2014, to October 17, 2016 seeking remedy under the Securities Exchange Act of 1934. The matter was related to Opus's press release on October 2016 which stated, "Opus Bank Announces Loan Charge-Offs Will Impact Third Quarter Earning”. The Bank had informed that the earnings for Q3 2016 "will include a $0.59 per diluted share impact from loan charge-offs and is expected to result in a net loss of approximately $0.05 per diluted share for the third quarter of 2016". The impact of this disclosure resulted in the price of shares of the Bank closing at $27.20 per share on October 17, 2016, after shedding $7.25 per share, or over 21% decline. This was a result of the unusually heavy trading volume of the Bank's shares. The sudden and huge drop in share price of the Bank resulted in significant losses and damages to the shareholders.

The shareholders also claimed that during the entire period mentioned above, Bank and its representatives continued to make false and/or misleading statements and failed to disclose the Bank's adverse facts relating to its business, operations, and prospects. The Bank had not given the true picture with regards to the quality of its loans which resulted in the huge charge-offs. The lawsuit further claimed that the Bank did not have proper internal controls over its accounting and financial reporting. This, in turn, resulted in misleading financial information about the Bank's performance, operations and business being shared with the public.

About Opus Bank

Opus Bank was founded on September 30, 2010, by Founding Chairman, CEO and President, Stephen H. Gordon and is headquartered in Irvine, California. Opus Bank is an FDIC insured California-chartered Commercial Bank and offers Banking products and solutions to its customers through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. Its range of products and services include treasury and cash management and depository solutions and a wide range of loan products, including commercial, healthcare, media and entertainment, corporate finance, multifamily residential, commercial real estate and structured finance. It is also an SBA preferred lender. Opus Bank operates 50 Banking offices, including 31 in California, 16 in the Seattle/Puget Sound region in Washington, two in the Phoenix metropolitan area of Arizona and one in Portland.

As on September 30, 2017, Opus Bank has $7.3 billion of total assets, $5.1 billion of total loans, and $6.1 billion in total deposits.

Last Close Stock Review

Opus Bank's share price finished last Friday's trading session at $24.80, advancing 1.43%. A total volume of 117.28 thousand shares have exchanged hands. The Company's stock price surged 5.76% in the last three months, 11.21% in the past six months, and 14.02% in the previous twelve months. Shares of the Company have a PE ratio of 231.78 and have a dividend yield of 3.23%. The stock currently has a market cap of $789.14 million.

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SOURCE: Pro-Trader Daily