New York Community Bancorp, Inc. (NYSE: NYCB) Investor Alert: Lawsuit alleges Misleading Statements


A lawsuit was filed in the U.S. District Court for the Eastern District of New York by an investor who bought shares of New York Community Bancorp, Inc. (NYSE: NYCB) alleging that the company violated federal securities laws in relation to some allegedly false and misleading statements made between March 1, 2023, and January 30, 2024.

Investors who bought a sizable portion of New York Community Bancorp, Inc. (NYSE: NYCB) shares between March 1, 2023 and January 30, 2024, as well as those who bought any shares of the company before March 2023 and are still holding any of those shares, are subject to certain options and, in some cases, have stringent deadlines. Last day: April 4, 2024. NYSE: Investors in NYCBs may reach out to the Shareholders Foundation by phone at +1(858) 779-1554 or by email at [email protected].

Serving as Flagstar Bank, N.A.’s bank holding company, New York Community Bancorp, Inc. offers banking services and products across the US. According to New York Community Bancorp, Inc., its yearly Net Income increased from $596 million in 2021 to $650.00 million in 2022, and its Total Revenue increased from $1.35 billion in 2021 to over $1.48 billion in 2022.

New York Community Bancorp, Inc. and Signature Bridge Bank, N.A. (Signature) entered into a Purchase and Assumption Agreement on March 20, 2023, with the goal of acquiring certain assets and taking on certain liabilities.

New York Community Bancorp, Inc. released its fiscal fourth quarter 2023 financial results on January 31, 2024, before to the market opening. Due to a $552 million provision for loan losses, which was mostly caused by greater net charge-offs and a marked increase in the ACL [allowance for credit losses] coverage ratio, New York Community Bancorp, Inc. reported a fourth quarter net loss of $252 million. The Company also announced that it would reduce its quarterly dividend to $0.05 per common share. The Company went on to say that these were necessary improvements because the Signature acquisition caused NYCB to cross the significant threshold [of becoming a $100 billion bank] earlier than expected. When NYCB crossed this $100 billion mark, it was subject to stricter banking regulations.

On January 29, 2024, the share price of New York Community Bancorp, Inc. (NYSE: NYCB) was $10.52; however, on February 07, 2024, the share price dropped to $3.60.

In the lawsuit, the plaintiff claims that the defendants broke federal securities laws while selling common shares of New York Community Bancorp, Inc. (NYSE: NYCB) to buyers between March 1, 2023, and January 30, 2024. The plaintiff specifically alleges that between March 1, 2023 and January 30, 2024, the Defendants failed to disclose to investors that the Company was experiencing higher net charge-offs and deterioration in its office portfolio, that as a result, NYCB was reasonably likely to incur higher loan losses, that the Company would adversely affect its financial results due to the foregoing and NYCB’s status as a Category IV bank, that the Company would reduce its quarterly common dividend to $0.05 per common share in order to preserve capital, and that due to the Defendants’ positive statements about the Company’s business, operations, and prospects were

Investors in New York Community Bancorp, Inc. (NYSE: NYCB) may contact the Shareholders Foundation to learn more about their options.

Get in touch with Investors Foundation, Inc.Michael Daniels: +1-(858)-779-1554; 3111 Camino Del Rio North, Suite 42392108, San Diego(858)[email protected] is the fax number.

About The Shareholders Foundation, Inc.: We are a professional portfolio monitoring and settlement claim filing service that keeps investors informed about securities class actions, settlements, judgments, and other legal news pertaining to the stock and financial markets. We also conduct research on shareholder issues. With a vast network of contacts, Shareholders Foundation, Inc. provides support, guidance, and aid to each and every shareholder. It is not a law firm, The Shareholders Foundation, Inc. The Shareholders Foundation is not involved in the filed, reached, or settled cases, investigations, or settlements mentioned. The public is offered this information as a service. It should not be relied upon and is not meant to be legal advice.

Leave A Reply

Your email address will not be published.