Customers Bancorp, Inc. (CUBI) Investigation

The investigation focuses on the propriety of Customers Bancorp’s recent assurances that expense reduction opportunities would not adversely impact “risk management and compliance or critical technology investments” and “these are the areas we plan to enhance even further by redeploying savings.”

Cracks may have emerged beginning on April 12, 2024, when Customers Bancorp announced the abrupt termination “for cause” of its then-CFO Carla A. Leibold. Customers Bancorp said she “violated company policy” but gave no further explanation other than to say she disputed the characterization. This news sent the price of Customers Bancorp shares almost 5% lower the next day.

Then, on April 25, 2024, Customers Bancorp announced that the company and Leibold entered into a separation agreement that day, under which they recharacterized the termination of her employment as a “separation by mutual agreement.” This move, however, was met with skepticism by investors, as Customers Bancorp shares fell over 5% over the next day.

Most recently, on August 8, 2024, Customers Bancorp attached an agreement with the Federal Reserve Bank of Philadelphia (“Reserve Bank”) to its quarterly filing. The agreement recited that the Reserve Bank “identified significant deficiencies related to [Customers] Bank’s risk management practices and compliance with the applicable laws, rules, and regulations relating to anti-money laundering” and “regulations issued by the Office of Foreign Assets Control of the United States Department of the Treasury[.]” This news drove the price of Customers Bancorp shares over 13% lower that day.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the CUBI investigation about?

We are looking into whether Customers Bancorp may have misled investors about its commitment to enhance its risk management and compliance functions and, if so, whether there’s a connection to the recent CFO turnover.

WHAT SHOULD I DO?

I worked at CUBI. What should I do?

If you were an employee of CUBI, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in CUBI, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any CUBI investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.