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PACW.US
id: 819, Created by Stan Vick, Scout

PacWest (PACW) Collapse Case

C.D. California
Court
8:23-cv-01685
Case number
  • In May 2023, the PacWest stock price collapsed after the FED rate hike and sharp deposit outflows. As a result, shareholders took a huge loss in their $PACW holdings.
  • Investors suspect PacWest of concealing the financial impact of rising interest rates, liquidity shortages, and other issues which ultimately led to a buyout by Banc of California.
On May 3, 2023, Bloomberg published an article titled “Regional Banks Sink as PacWest Weighs Strategic Options” which stated that “PacWest Bancorp led a renewed slide in regional banks after a report that it’s weighing strategic options including a sale heightened concerns that the turmoil engulfing smaller lenders is far from over.”

On the same day, Forbes published an article titled “PacWest Stock Falls 39% After Federal Reserve’s Latest Interest Rate Hike” which stated that “PacWest has been considering a breakup or capital raise.”

On this news, $PACW fell over 50%, damaging shareholders.

Furthermore, on May 11, 2023, PacWest revealed that “during the week ended May 5, 2023, our deposits declined approximately 9.5%, with a majority of that decline occurring on May 4th and May 5th after the news reports on the afternoon of May 3rd.” On this news, $PACW fell nearly 23%.

Investors have reasons to suspect PacWest of concealing the financial impact of rising interest rates, liquidity shortages, and other issues which ultimately led to a buyout by Banc of California.
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
04 May 2023
Filing date
11 September 2023
Lead Plaintiff Deadline
10 November 2023
Collecting participants…
Created by Stan Vick, Scout

Case history

Stan Vick
13 September 2023
An investor filed a proposed class action against PacWest Bancorp, accusing $PACW of downplaying its vulnerability to increasing interest rates and disregarding warning signals stemming from the Silicon Valley Bank's collapse earlier this spring, resulting in a significant decline in its stock value.

PacWest Bancorp

PacWest Bancorp operates as the bank holding company for Pacific Western Bank that provides various banking products and services. The company accepts demand, money market, and time deposits. It al...

    Ticker
    PACW.US
    ISIN
    US6952631033
    CIK
    1102112
    Sector
    Financial Services
    Industry
    Banks-Regional
    Country
    USA
    Address
    9701 Wilshire Boulevard, Beverly Hills, CA, United States, 90212