NEW YORK, Feb. 28, 2020 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Provident Financial Services, Inc. (“Provident” or the “Company”) (NYSE: PFS). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Provident and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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 further disclosed that the Company had established a $2.5 million specific reserve for this impaired 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 up to $9.3 million, after tax, or up to $0.14 per diluted share.
Then, on July 27, 2018, pre-market, 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 (“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.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 9980