Shareholder Alert: Robbins LLP Reminds Investors Cadence Bancorporation (CADE) Sued for Misleading Shareholders
November 04 2019 - 1:51PM
Business Wire
Shareholder rights law firm Robbins LLP reminds investors that a
purchaser of Cadence Bancorporation (NYSE: CADE) filed a class
action complaint for alleged violations of the Securities Exchange
Act of 1934 between July 23, 2018 and July 22, 2019. Cadence is a
financial holding company that provides commercial banking products
and services through its subsidiary.
If you suffered a loss as a result of Cadence's misconduct,
click here.
Cadence Bancorporation (CADE) Accused of Misleading
Shareholders
According to the complaint, throughout the relevant period,
Cadence's financial reports demonstrated strong loan growth and
overall stable credit. However, Cadence also acknowledged risks
associated with managing credit, recognizing that "[its] business
depends on [its] ability to successfully manage credit risk" and
that potential loan losses exceeding its allowance for credit
losses "may adversely affect [its] business." Despite these
acknowledgements, Cadence failed to mention that it was
experiencing a lack of adequate control to properly assess credit
risk. As a result, Cadence's loans likely posed an increased risk
of significant loss that would adversely impact the Company. These
adverse effects were realized on July 22, 2019, when Cadence
disclosed that its second quarter 2019 financial results had been
negatively impacted by "higher credit costs including net
charge-offs of $18.6 million and loan provisions of $28.9 million."
On this news, Cadence's stock price fell $3.75, or 19%, per share
to close at $15.86, and has yet to recover.
Cadence Bancorporation (CADE) Shareholders Have Legal
Options
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: https://www.businesswire.com/news/home/20191104005829/en/
Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
lkandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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