Finance

Investors Alerted to Deadline in Securities Class Action Against New York Community Bancorp

NEW ORLEANS, March 29, 2024 /PRNewswire/ -- The legal team of Kahn Swick & Foti, LLC (KSF), with its esteemed partner and former Attorney General of Louisiana, Charles C. Foti, Jr., has issued an investor reminder of the imminent April 8, 2024 deadline for the submission of lead plaintiff applications in a lawsuit alleging securities fraud by New York Community Bancorp, Inc. ("NYCB" or the "Company") (NYSE: NYCB). Individuals who invested in the company's securities within the timeframe of March 1, 2023, to January 30, 2024 (the "Class Period") are encouraged to review their legal options promptly. This pending legal matter is being handled by the United States District Court for the Eastern District of New York.

Action Steps for Affected NYCB Securities Purchasers

Investors who acquired NYCB securities and are concerned about their legal rights, or who want insights on the potential impact of this case on their financial recovery, are invited to reach out to KSF Managing Partner Lewis Kahn. Communications can be made toll-free at 1-877-515-1850 or through email at [email protected]. Further information is also available at Kahn Swick & Foti's website, where interested parties can learn more about the case. It should be noted that for investors to qualify as a lead plaintiff in this class action, it's necessary to petition the Court no later than April 8, 2024.

Overview of the Securities Lawsuit at Hand

The legal action in focus accuses NYCB and specific executives of failing to make critical disclosures to the investors during the designated Class Period. According to the allegations, this failure breached federal securities laws and potentially misled shareholders about the true financial health of the institution.

On January 31, 2024, before the market opened, NYCB unveiled its fourth-quarter financial figures for 2023. The disclosure was concerning for investors, revealing a net loss of $252 million for the quarter. This substantial deficit was primarily driven by an unexpected $552 million provision for loan losses. The report pointed out that this was chiefly due to "higher net charge-offs" as well as a considerable uptick in the ACL (allowance for credit losses) coverage ratio. Additionally, shattering shareholders' expectations, the company also announced a severe cut in the quarterly dividend rate to a mere $0.05 per share.

Following the announcement of these alarming financial results, NYCB's share price experienced a drastic slide. The stock plummeted by $3.90, which equates to a significant 37.57% drop in value. It closed the day's trading at $6.47 per share, witnessed on January 31, 2024. Notably, this considerable depreciation occurred amidst an abnormally high volume of trades, indicating a severe loss of investor confidence and market reactivity to the unexpected news.

The case in question is officially listed as Lemm v. New York Community Bancorp, Inc., et al., and has been assigned the case number 24-cv-903.

Background Information on Kahn Swick & Foti, LLC

Kahn Swick & Foti, LLC stands out as one of the top boutique securities litigation law firms on the national stage. With a team that includes the esteemed former Louisiana Attorney General Charles C. Foti, Jr., KSF is dedicated to serving a diverse client base, which includes public institutional investors, money managers, hedge funds, as well as retail investors. The firm's mission revolves around pursuing compensation for investment losses due to the fraudulent or wrongful acts of publicly traded companies.

KSF maintains a widespread presence with offices situated in key locations across the United States including New York, Delaware, California, Louisiana, and New Jersey.

For a comprehensive understanding of Kahn Swick & Foti, LLC and its services, please consider visiting www.ksfcounsel.com.

Contact Details for Further Information

If you require further details or wish to discuss your involvement in the class action lawsuit against New York Community Bancorp, you can contact the firm directly:

Kahn Swick & Foti, LLC Lewis Kahn, Managing Partner Email: [email protected] Phone: 1-877-515-1850 Office Location: 1100 Poydras St., Suite 960 New Orleans, LA 70163

The ongoing actions of Kahn Swick & Foti, LLC in this matter, and their dedicated efforts to protect the rights and interests of the affected NYCB securities purchasers, reveal the critical role of securities litigation specialists in holding corporations accountable. As the deadline for lead plaintiff submissions draws near, investors are urged not to delay in reviewing their legal options.

It is worth noting that the class action lawsuit represents a significant judicial process aimed at redressing the damages suffered by investors. As details continue to unfold, the course of the proceedings will be closely watched by the financial community and investors alike, marking a pivotal instance of justice-seeking in the securities market.

The court's eventual decision could potentially set a precedent that may impact future cases of securities law litigation. Depending on the outcome, there may be broader implications for how companies disclose their financial health and engage with their investors, potentially leading to more transparency and honesty in the financial markets.

In this complex landscape, Kahn Swick & Foti, LLC's role as an advocate for aggrieved investors is particularly poignant. Their commitment to pursuing fair recovery for economic losses serves as a beacon of hope for those who may feel marginalized or overwhelmed by the often-intimidating world of securities litigation.

As investors await the outcomes of this pivotal legal battle, many will look to the experience and expertise of KSF as a guide through the intricate judicial processes that lie ahead. The firm's strategic counsel and vigorous representation in court are vital components in the quest for accountability and compensation.

If you are an affected investor and would like to take action, it is critical that you understand the importance of the April 8, 2024, deadline. The designation as a lead plaintiff is a privileged position that allows investors to play a direct role in guiding the class action to benefit all class members.

Those who do not meet the deadline risk forfeiting their ability to influence the lawsuit directly, though they may still benefit from any eventual settlement or judgment awarded to the class as a whole.

Investors are reminded that the allegations against New York Community Bancorp encompass a period where investment decisions may have been made based on incomplete or misleading information. As such, the potential recovery of losses hinges on the court's interpretation of the facts and the applicable law.

This potential recovery is not simply a matter of restitution for past losses; it is also about upholding the integrity of the market. The effort to hold NYCB accountable is not only a pursuit for justice but also seeks to reaffirm the expectations of truth and transparency that govern investor relations.

For individuals contemplating involvement in the class action, Kahn Swick & Foti, LLC extend their professional legal expertise. The firm, with its seasoned team, is primed to handle the complexities that such securities litigation entails, leveraging their deep understanding of the law to advocate for their clients' best interests.

For more details and updates on the case as it progresses, the aforementioned contact options remain available. Investors are encouraged to keep informed and take timely action to secure their rights and potential for recovery in the face of NYCB's alleged disclosures' shortcomings.

In the realm of investment and finance, the repercussions of this lawsuit extend beyond the courtroom. The class action against New York Community Bancorp emphasizes the critical need for investor vigilance and the importance of seeking competent legal representation when disputes arise.

As the lawsuit progresses, the financial community will keep a watchful eye on the unfolding events, with many hoping that the actions of Kahn Swick & Foti, LLC will lead to a fair and just outcome that reaffirms the fundamental principles of corporate responsibility and ethical investor relations.

The matter of Lemm v. New York Community Bancorp, Inc., et al., may take time to resolve, but the lasting implications for corporate conduct, investor confidence, and the rule of law in the financial industry will be closely scrutinized as critical measures of market integrity.

Investors and the broader public are reminded to follow this case with discernment and to consider the broader implications that this lawsuit holds for protecting their financial interests in the present and for the future health of the securities market.

SOURCE: Kahn Swick & Foti, LLC

In conclusion, as April 8, 2024, approaches, potential lead plaintiffs are advised to act without delay. The steps they take today may well shape the securities landscape for years to come.