Cadence Bancorporation Class Action Lawsuit
- Company Name
- Cadence Bancorporation
- Stock Symbol
- Class Period
- July 23, 2018 to July 22, 2019
- Motion Deadline
- November 15, 2019
- Southern District of Texas
On September 16, 2019, the Cadence Bancorporation class action lawsuit was filed charging Cadence and certain of its officers with violations of the Securities Exchange Act of 1934. The Cadence class action lawsuit was commenced in the Southern District of Texas on behalf of purchasers of Cadence securities between July 23, 2018 and July 22, 2019 (the “Class Period”) and is captioned Miller v. Cadence Bancorporation, No. 4:19-cv-03492.
Cadence is a financial holding company that focuses on middle-market commercial lending, complemented by retail banking and wealth management services, and provides banking services to businesses, high net worth individuals, and business owners.
The Cadence class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse information about Cadence’s business, operations, and prospects. Specifically, defendants failed to disclose that Cadence lacked adequate internal controls to assess credit risk and that, as a result, certain of Cadence’s loans posed an increased risk of loss and Cadence was reasonably likely to incur significant losses on those loans, which would adversely impact Cadence’s financial results. As a result of this information being withheld from the market, Cadence securities traded at artificially inflated prices during the Class Period, with Cadence’s stock price reaching a high of more than $31 per share.
Then on July 22, 2019, Cadence announced disappointing second quarter 2019 financial results, including a decrease in adjusted net income of $24 million, or 31.8%, compared to the first quarter of 2019. According to Cadence’s Chief Executive Officer, the “‘results for the second quarter of 2019 . . . were unfortunately negatively impacted by higher credit costs including net charge-offs of $18.6 million and loan provisions of $28.9 million.’” On this news, the price of Cadence stock fell $3.75 per share, or over 19%, to close at $15.86 per share on July 22, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Cadence securities during the Class Period to seek appointment as lead plaintiff in the Cadence class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Cadence class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Cadence class action lawsuit. An investor’s ability to share in any potential future recovery of the Cadence class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Cadence class action lawsuit or have questions concerning your rights regarding the Cadence class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Cadence class action lawsuit must be filed with the court no later than November 15, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.