An investor in Wilshire Bancorp, Inc shares filed a lawsuit on behalf of those who purchased Wilshire Bancorp securities only between March 15, 2010 and March 16, 2011, against Wilshire Bancorp, Inc for allegedly violating Federal Securities Laws. Meanwhile an investigation on behalf of current long term investors in Wilshire Bancorp, Inc. (NASDAQ:WIBC) including also those who purchased (also) prior to March 2010 their WIBC shares and continue to hold those shares was announced.
The investigation by a law firm on behalf of current long term investors in stocks of Wilshire Bancorp, Inc. (NASDAQ:WIBC) concerns whether certain current and/or former members of Wilshire Bancorps board of directors and certain executive officers can be held liable in connection with the alleged Securities Laws violations in the lawsuit filed by investors who purchased WIBC shares only between March 15, 2010 and March 15, 2011.
According to the complaint filed in in the United States District Court for the Central District of California the plaintiff alleges that Wilshire Bancorp, Inc. violated the Securities Exchange Act of 1934 by knowing or recklessly disregarding between March 15, 2010 and March 16, 2011 that their public statements concerning Wilshire Bancorps business, operations and prospects were materially false and misleading.
Wilshire Bancorp, Inc. reported declining Net Income from $26.81million in 2007 to a Net Loss of $28.07million in 2010. Shares of Wilshire Bancorp, Inc. declined from over $18 during 2007 to as low as $3.65 per share, but increased to $11.55 in April 2010.
Then on March 16, 2011, Wilshire Bancorp, Inc disclosed that it had conducted an internal investigation with assistance of outside independent professional firms and that its internal investigation was extensive and included loan related activities and other matters involving improper activities of a certain former loan officer.
Wilshire Bancorp, Inc said that a result of the investigation, management discovered a significant deficiency in the operating effectiveness of loan underwriting, approval and renewal processes for those loan originations and asset sales associated with the former loan officer.
Further, Wilshire Bancorp 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.
Shares of Wilshire Bancorp, Inc. (Nasdaq:WIBC) fell from over $6.50 in the beginning of March 2011 to $4.73 on March 23, 2011 and closed on April 4, 2011 at $5.11 per share.