PacWest Bancorp Class Action Lawsuit: Seeking Justice for Stock Losses

If you suffered losses in PacWest Bancorp stock contact PacWest Bancorp stock loss lawyer Timothy L. Miles

PacWest Bancorp Class Action Lawsuit: Seeking Justice for Stock Losses

If you are one of the investors who suffered losses in PacWest Bancorp stock, you may have legal options to seek compensation. The PacWest Bancorp Class Action Lawsuit aims to represent purchasers or acquirers of PacWest Bancorp securities between February 28, 2022, and May 3, 2023, inclusive - a period known as the Class Period. In this comprehensive guide, we will delve into the details of the PacWest Bancorp Class Action Lawsuit, the allegations against the company, and how you can potentially become a lead plaintiff to fight for your rights.

Understanding the PacWest Bancorp Class Action Lawsuit

The PacWest Bancorp Class Action Lawsuit, also known as Tan v. PacWest Bancorp, No. 23-cv-01685 (C.D. Cal.), accuses PacWest Bancorp and certain top executives of violating the Securities Exchange Act of 1934. The lawsuit alleges that PacWest Bancorp made false and misleading statements and failed to disclose critical information that affected the stability and sustainability of its deposit base. As a result, investors suffered significant losses.

Allegations Against PacWest Bancorp

According to the class action lawsuit, PacWest Bancorp understated the impact of interest rates on its subsidiary, Pacific Western Bank (PWB). The lawsuit claims that PWB, a regional bank based in Los Angeles, California, had excessive concentration in specific industries, making it vulnerable to excessive deposit flows and potential liquidity crises. This alleged understatement misled investors into believing that PacWest Bancorp's deposit base was stable and sustainable.

News Reports and Stock Price Decline

​On May 3, 2023, Bloomberg published an article titled "Regional Banks Sink as PacWest Weighs Strategic Options." The article reported that PacWest Bancorp was considering strategic options, including a potential sale. This news led to a renewed slide in regional banks and raised concerns about the ongoing turmoil in the industry. The same day, Forbes published an article titled "PacWest Stock Falls 39% After Federal Reserve's Latest Interest Rate Hike," stating that PacWest Bancorp had been considering a breakup or capital raise.

These news reports triggered a significant decline in the price of PacWest Bancorp stock, dropping more than 44%. The PacWest Bancorp Class Action Lawsuit alleges that on May 11, 2023, PacWest Bancorp revealed a decline of approximately 9.5% in deposits during the week ended May 5, 2023, with a majority of the decline occurring after the news reports on May 3rd. This disclosure further led to a nearly 23% decline in the stock price.

Lead Plaintiff Process and Benefits

If you suffered losses in PacWest Bancorp stock during the Class Period, you have the opportunity to serve as a lead plaintiff in the class action lawsuit. The Private Securities Litigation Reform Act of 1995 allows any investor who suffered losses to seek appointment as lead plaintiff. The lead plaintiff is typically the investor with the greatest financial interest in the relief sought by the class, and they act on behalf of all other class members.
Serving as lead plaintiff comes with several advantages, including the ability to negotiate competitive attorney fees and reduce litigation costs by actively monitoring class counsel. Lead plaintiffs also have the opportunity to manage the litigation, review important filings, and be involved in all negotiations related to any potential settlement. Additionally, lead plaintiffs may be eligible for reimbursement of reasonable expenses incurred during the representation.

Non-U.S. Investors and Lead Plaintiff Eligibility

Non-U.S. investors can also serve as lead plaintiffs in the PacWest Bancorp class action lawsuit. The courts in the U.S. recognize that non-U.S. investors have substantial holdings and are adequate lead plaintiffs, granting them the same rights as U.S. investors to move for lead plaintiff status. Therefore, if you suffered losses in PacWest Bancorp stock as a non-U.S. investor, you could seek appointment as lead plaintiff in the lawsuit.

Lead Plaintiff Restrictions and Multiple Lawsuits

While investors have the opportunity to serve as lead plaintiff in the PacWest Bancorp class action lawsuit, the securities laws impose certain restrictions. An individual cannot be lead plaintiff in more than five securities class actions during any three-year period. This limitation ensures that plaintiffs who have the most significant losses and are most representative of the class take on the lead plaintiff role. However, if you meet the eligibility criteria, you can move to be appointed as lead plaintiff in the PacWest Bancorp class action lawsuit.

Compensation Calculation and Recovery Process

In securities fraud class action lawsuits, damages are typically calculated based on out-of-pocket losses. These losses represent the difference between the price at which the stock was sold and the price it would have been sold if not for the alleged misrepresentations or omissions by the defendant. If there is a settlement in the PacWest Bancorp class action lawsuit, eligible class members will receive a court-ordered notice providing instructions on how to file a claim and receive compensation.

Hiring a PacWest Bancorp Stock Loss Lawyer

Navigating the complexities of a class action lawsuit requires skill and legal representation. If you suffered losses in PacWest Bancorp stock, it is advisable to consult with a PacWest Bancorp stock loss lawyer. These lawyers focus on securities fraud cases and can guide you through the legal process, ensuring your rights are protected. Look for a reputable lawyer with experience, verifiable credentials, and a trustworthy reputation among peers and previous clients.

Contact a PacWest Bancorp Stock Loss Lawyer Today

If you suffered losses in PacWest Bancorp stock and are interested in pursuing a class action lawsuit, it's crucial to act promptly. The deadline for lead plaintiff motions in the PacWest Bancorp class action lawsuit is November 13, 2023. Contact a PacWest Bancorp stock loss lawyer, such as Timothy L. Miles, for a free case evaluation. Share your experience, seek legal advice, and explore your options for seeking justice and compensation.

If you suffered losses in PacWest Bancorp stock, contact PacWest Bancorp stock loss lawyer Timothy L. Miles today for a free case evaluation about a PacWest Bancorp class action lawsuit. Call today and see what a PacWest Bancorp stock loss lawyer can do for you if you suffered losses in PacWest Bancorp stock.

PACWEST BANCORP LOSS LAWYER TIMOTHY L. MILES
(855) TIM-M-LAW (855/846-6529)

Motions for the appointment of lead plaintiff must be filed no later than November 13, 2023. If you suffered losses in PacWest Bancorp stock and would like to move to be appointed lead plaintiff or would just like additional information, please contact PacWest Bancorp stock loss lawyer Timothy L. Miles for a free, no-obligation, case evaluation.

THE LAW OFFICES OF TIMOTHY L. MILES
Tapestry at Brentwood Town Center
300 Centerview Dr., #247
Brentwood, TN 37027
Phone: (855) 846-6529
Email: [email protected]

CONNECT Facebook Instagram Twitter Linkedin YouTube Pinterest

PacWest Bancorp stock loss lawyer Timothy L. Miles

Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors,  shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,​Class Action:  Class Action: Top National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).  Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or call for free anytime.