An investor in shares of Eagle Bancorp, Inc. (NASDAQ: EGBN) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Eagle Bancorp, Inc. in connection with certain allegedly false and misleading statements made between March 2, 2015 and July 17, 2019.
Bethesda, MD based Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. Eagle Bancorp, Inc. reported that its annual Total Revenue rose from $304.28 million in 2017 to $330.91 million in 2018 and that its Net Income increased from $100.23 million in 2017 to $152.27 million in 2018.
On July 17, 2019, Eagle Bancorp, Inc disclosed rising legal costs stemming from ongoing internal and government investigations of “the Company’s identification, classification and disclosure of related party transactions; the retirement of certain former officers and directors; and the relationship of the Company and certain of its former officers and directors with a local public official.”
Shares of Eagle Bancorp, Inc. (NASDAQ: EGBN) declined from $68.30 per share in October 2017 to as low as $40.09 per share on July 24, 2019.
According to the complaint the plaintiff alleges on behalf of purchasers of Eagle Bancorp, Inc. (NASDAQ: EGBN) common shares between March 2, 2015 and July 17, 2019 , that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between March 2, 2015 and July 17, 2019, the Defendants made false and/or misleading statements and/or failed to disclose that Eagle Bancorp’s internal controls and procedures and compliance policies were inadequate, that the foregoing shortcoming created a foreseeable risk of heightened regulatory scrutiny and the need for the Company undertake its own internal investigations, and that as a result, the Company’s public statements were materially false and misleading at all relevant times.