Customers Bancorp (CUBI) AML Compliance Issues Case

E.D. Pennsylvania

Court

2:24-cv-06416

Case number

03/01/2024

Class period Start

08/08/2024

Class period End

01/31/2025

Lead Plaintiff motion deadline

$CUBI investors filed a lawsuit against Customers Bancorp for misleading them about compliance with anti-money laundering laws and the company’s internal controls.
On August 8, 2024, the Federal Reserve issued an enforcement action against Customers Bancorp, citing "significant deficiencies" in its AML compliance. Following this, $CUBI stock dropped by 15.1%.
$CUBI investors can join this case to be notified about potential recovery.
Case Details:

Between February and August 2024, Customers Bancorp assured investors that its internal controls and compliance systems were effective. 

However, on April 12, 2024, the company announced that CFO Carla Leibold had been fired for cause, citing policy violations.

This sparked concerns about potential compliance issues.

On August 8, 2024, the Federal Reserve issued an enforcement action against Customers Bancorp, citing serious deficiencies in its AML practices.

The action revealed flaws in the company's risk management practices tied to its digital asset services and highlighted the need for strengthened controls.

Following the announcement, $CUBI dropped by 15.1%.

Based on these events, $CUBI investors filed a lawsuit against Customers Bancorp, accusing the company of the following:
It misled investors about its compliance with AML regulations and internal controls.
It failed to disclose significant deficiencies that led to regulatory action.
Investors believe Customers Bancorp misrepresented its compliance and risk management systems, causing substantial financial harm when the deficiencies were exposed.

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Financial Misrepresentation

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

08/08/2024

Lead Plaintiff Deadline

01/31/2025

Collecting participants…

Customers Bancorp Inc

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses. The co...

Ticker

CUBI.US

ISIN

US23204G1004

CIK

1488813

Sector

Financial Services

Industry

Banks - Regional

Country

USA

Address

701 Reading Avenue, West Reading, PA, United States, 19611