Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, is investigating potential claims against Provident Financial Services, Inc. (NYSE:PFS) on behalf of Provident stockholders. Our investigation concerns whether Provident has violated the federal securities laws and/or engaged in other unlawful business practices.
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On April 27, 2018, Provident released its financial results for the first fiscal quarter of 2018, disclosing "deterioration in selected commercial credits, including a $15.4 million credit to a commercial borrower" that had filed for bankruptcy in March 2018. Provident also disclosed that the Company had established a $2.5 million specific reserve for this loan.
On July 5, 2018, Provident disclosed that the Company expected an additional reserve would be required for the remaining balance of the previously disclosed $15.4 million credit, and that its net income for the quarter ended June 30, 2018 would be reduced by as much as $9.3 million, after tax, or up to $0.14 per diluted share.
Then, on July 27, 2018, Provident released its financial results for the second fiscal quarter of 2018, disclosing that two additional loans from another commercial borrower became impaired during the quarter, leading to a net charge-off of $4 million. Provident’s Chairman, President, and Chief Executive Officer ("CEO") Christopher Martin stated that the losses "were primarily driven by two commercial relationships which we believe involved borrower fraud in each instance."
On this news, Provident’s stock price fell $1.46 per share, or 5.27%, to close at $26.23 per share on July 27, 2018.
Later, in December 2019, certain Provident emails were made public during the course of litigation in New York state court, which indicated that Provident was aware of the fraudulent nature of and/or risks posed by at least one of its failed loans. Specifically, Provident executives and top-level management, including CEO Martin, seemingly ignored multiple red flags regarding a potential loan to Lotus Exim International ("Lotus") before ultimately extending a $17 million loan to Lotus.
If you purchased or otherwise acquired Provident shares and suffered a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at firstname.lastname@example.org, or telephone at (646) 860-9156, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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