Case Summary

New York Community Bancorp

NYSE: NYCB

Case Details

  • Lemm, Jr. v. New York Community Bancorp, Inc. et al.
  • Class Period:March 1, 2023 - January 30, 2024
  • Date Filed:February 6, 2024
  • Jurisdiction:U.S. District Court, Eastern District of New York
  • Docket Number: 1:24-cv-00903
  • Lead Plaintiff Deadline: April 8, 2024
Days Left to
Seek Plaintiff
47

Overview

A class action lawsuit has been filed against New York Community Bancorp, Inc. (“NYCB” or the “Company”) (NYSE: NYCB) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The NYCB lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired NYCB securities between March 1, 2023 and January 30, 2024, both dates inclusive (the “Class Period”), and investors have until April 8, 2024 to seek appointment as lead plaintiff of the NYCB class action lawsuit.

NYCB is a large commercial-real estate lender in the New York City market area, where it specializes in rent-regulated, non-luxury apartment buildings.  NYCB is engaged in several national businesses, including multi-family lending, mortgage originations and servicing, and warehouse lending. The Company’s specialty finance loans and leases are generally made to large corporate obligors that participate in stable industries nationwide, and its warehouse loans are made to mortgage lenders across the country.

On March 20, 2023, the Company entered into a Purchase and Assumption Agreement to acquire certain assets and assume certain liabilities of Signature Bridge Bank, N.A. (“Signature”).  On January 31, 2024, before the market opened, NYCB announced its fiscal fourth quarter 2023 financial results.  The Company reported a fourth quarter net loss of $252 million due to a “$552 million provision for loan losses which was “primarily attributable to higher net charge-offs” and “a significant increase in the ACL [allowance for credit losses]” coverage ratio.

Additionally, the Company disclosed that it would cut its quarterly dividend to $0.05 per common share.  The Company further explained that these actions were “necessary enhancements” after NYCB “crossed the important threshold [of becoming a $100 billion bank] sooner than anticipated as a result of the Signature transaction.”  Crossing this $100 billion threshold subjected NYCB to enhanced banking standards and requirements.  On this news, NYCB’s stock price fell $3.90, or 37.57%, to close at $6.47 per share on January 31, 2024, on unusually heavy trading volume.

Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company was experiencing higher net charge-offs and deterioration in its office portfolio; (2) as a result, NYCB was reasonably likely to incur higher loan losses; (3) as a result of the foregoing and NYCB’s status as a Category IV bank, the Company was reasonably likely to increase its allowance for credit losses; (4) the Company’s financial results would be adversely affected; (5) to preserve capital, the Company would reduce quarterly common dividend to $0.05 per common share; and (6) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

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If you purchased or otherwise acquired NYCB (NYSE: NYCB) securities between March 1, 2023 and January 30, 2024, both dates inclusive, and suffered substantial losses, 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 investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the NYCB lawsuit is April 8, 2024.

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