First Republic Bank Class Action Lawsuit - FRC

15 days left to seek lead plaintiff status

Case Summary

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The First Republic class action lawsuit seeks to represent purchasers or acquirers of First Republic Bank (NYSE: FRC) securities between January 14, 2021 and March 14, 2023, inclusive (the “Class Period”).  Captioned City of Hollywood Police Officers’ Retirement System v. First Republic Bank, No. 23-cv-01993 (N.D. Cal.), the First Republic class action lawsuit charges First Republic, certain of its top executives, and its auditor KPMG, LLP with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the First Republic class action lawsuit, please provide your information in the form on this page.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the First Republic class action lawsuit must be filed with the court no later than June 23, 2023.

CASE ALLEGATIONS: First Republic is a California state-chartered bank and trust company that provides private banking, private business banking, and private wealth management.

The First Republic class action lawsuit alleges that defendants throughout the Class Period misrepresented the strength of First Republic’s balance sheet, liquidity, and position in the market.  Among other things, defendants understated and concealed the magnitude of the risks facing First Republic’s business model that would result from any decision by the Federal Reserve System (the “Fed”) raising the federal funds rate, thereby undermining the value of First Republic’s loan and securities portfolios and liquidity.

On October 24, 2022, First Republic announced disappointing third quarter 2023 financial results, reporting that First Republic’s net interest income growth had slowed to 20.6% year-over-year (down from 24.1% year-over-year growth the prior quarter) and its net interest margin (“NIM”) had plummeted to 2.71% (down from 2.80% the prior quarter).  First Republic attributed the decrease in NIM to “average funding costs increasing more rapidly than he offsetting increase in the average yields on interest-earning assets.”  On this news, First Republic’s common stock price declined more than 16%.

Then, on March 8, 2023, SVB Financial Group (“SVB”) announced that it was seeking to raise approximately $2.25 billion in capital due to continued higher interest rates, pressured public and private markets, and elevated levels of deposit attrition.  SVB also disclosed that it had sold “substantially all of its available for sale securities portfolio,” incurring a loss of approximately $1.8 billion on the sale.  In response, SVB’s depositors rushed to withdraw their funds out of fear over SVB’s solvency.  On March 10, 2023, SVB collapsed, and regulators seized control of the bank, placing SVB in Federal Deposit Insurance Commission receivership.  On this news, First Republic’s common stock price declined more than 72% over three trading sessions.

Finally, on March 15, 2023, S&P Global Ratings downgraded its long-term issuer credit rating and preferred stock issue rating for First Republic due to risks of deposit outflows leading to increased funding costs.  Fitch Ratings also announced it had downgraded First Republic’s credit rating, observing that First Republic’s “funding and liquidity profile has changed and represents a ‘weakest link.’”  On this news, First Republic’s common stock price declined more than 21%, further damaging investors. 

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired First Republic securities during the Class Period to seek appointment as lead plaintiff of the First Republic class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the First Republic class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the First Republic class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the First Republic class action lawsuit.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list.  And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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