Overview

A class action lawsuit has been filed against Customers Bancorp, Inc. (“Customers Bancorp” or the “Company”) (NYSE: CUBI) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws.  The Customers Bancorp class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired publicly traded Customers Bancorp securities between March 1, 2024, and August 8, 2024, both dates inclusive (the “Class Period”).  Investors have until January 31, 2025 to seek appointment as lead plaintiff in the Customers Bancorp class action lawsuit.

Customers Bancorp is a bank holding company.  It describes itself as follows: Customers Bancorp is a bank holding company engaged in banking activities through its wholly-owned subsidiary, Customers Bank, collectively referred to as “Customers” herein.  Customers is a forward-thinking bank with strong risk management that provides commercial and consumer customers the stability and trust inherent in working with an established and regulated financial institution.  Customers has diversified lending activities that build overall franchise value and a high-tech, high-touch branch-light strategy that serves its customers through a single-point-of-contact private banking strategy with a focus on community banking businesses, including commercial and industrial and commercial real estate loans (to borrowers in Pennsylvania, New Jersey, New York City, New England, and other geographies), multifamily lending, Small Business Administration (SBA) lending, and residential mortgage lending.  Customers also serves specialty businesses nationwide, including its specialty lending, commercial loans to mortgage companies and commercial equipment financing.  Customers offers digital banking to commercial and consumer businesses nationwide, including Banking-as-a-Service to fintech companies, payments and treasury services to businesses, and consumer loans through relationships with fintech companies.

Pertinent to this action is the Company’s digital asset business, which the Company describes as follows: in 2021, Customers Bank launched [Customers Bank Instant Token (“CBIT”)] on the TassatPay blockchain-based instant business-to-business (“B2B”) payments platform, which serves a growing array of B2B clients who want the benefit of instant payments, including key over-the-counter desks, exchanges, liquidity providers, market makers, funds, and other B2B verticals.  CBIT may only be created by, transferred to, and redeemed by commercial customers of Customers Bank on the instant B2B payments platform by maintaining U.S. dollars in deposit accounts at Customers Bank.  CBIT is not listed or traded on any digital currency exchange.  As of December 31, 2023 and 2022, Customers Bank held $2.8 billion and $2.3 billion of deposits from customers participating in CBIT, respectively.  The CBIT instant payments platform provides a closed system for intrabank commercial transactions and is not intended to be a trading platform for tokens or digital assets.  CBIT tokens are used only in connection with the CBIT instant payments platform and are not securities for purposes of applicable securities laws.  There are no scenarios in which the transaction or redemption value of one CBIT would not be equal to one U.S. dollar.  Each CBIT is minted with precisely one U.S. dollar equivalent, and those dollars are held in a non-interest-bearing omnibus deposit account until the CBIT is burned or redeemed.  The number of CBIT outstanding in the CBIT instant payments platform is always equal to the U.S. dollars held in the omnibus deposit account at Customers Bank and is reported as a deposit liability on the consolidated balance sheet.  The deposits from customers participating in CBIT include the omnibus deposit account established for the CBIT instant payments platform, which had an outstanding balance of $826.9 million and $23 thousand on December 31, 2023, and 2022, respectively.

The Customer Bancorp class action lawsuit alleges that Defendants, throughout the Class Period, provided materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects to make the statements made, in light of the circumstances under which they were made, not false and misleading.  Specifically, Defendants failed to disclose that: (1) Customers Bancorp had inadequate anti-money laundering practices; (2) as a result, it was not in compliance with its legal obligations, which subjected it to heightened regulatory risk; and (3) as a result, Defendants’ statements about Customers Bancorp’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all times.  When the true details entered the market, the lawsuit claims that investors suffered damages.

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If you purchased or otherwise acquired publicly traded Customers Bancorp securities between March 1, 2024, and August 8, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the Customers Bancorp class action lawsuit is January 31, 2025.