What is the Eagle Bank Lawsuit Investigation about?
The Eagle Bank Lawsuit Investigation is examining whether certain former officers and directors of Eagle Bank violated their duties to Eagle Bank and its shareholders by allegedly engaging in related-party transactions and unusual consulting agreements with public officials.
Have these alleged actions caused any harm to Eagle Bank and its shareholders?
As of July 26, 2019, Eagle Bank’s stock price has fallen approximately 24% since July 17, which was the date Eagle Bank released its latest securities filing. According to that filing, “During the three month period ended June 30, 2019 . . . the Company incurred legal, accounting and professional fees and expenses of $2.7 million . . . which represented an increase of 26%” over the same period in 2018. Most concerning for shareholders is why those expenses were incurred: “such expenses related primarily to legal fees and expenditures in connection with our responses to investigations and related document requests and subpoenas from government agencies examining matters, including the Company’s identification, classification and disclosure of related party transactions; the retirement of certain former officers and directors; and the relationship of the Company and certain of its former officers and directors with a local public official.”
What can I do as a shareholder of Eagle Bank?
Every shareholder of Eagle Bank has the right to hold officers and directors accountable for harm to Eagle Bank and its shareholders. One way to do so is called a “shareholder derivative suit.” That is a lawsuit by a shareholder that seeks to recover damages to Eagle Bank potentially caused by its former officers and directors.
How can I contact a lawyer regarding my rights as a shareholder of Eagle Bank?
Webster Book LLP offers a free consultation for these matters. If you would like to examine whether you have an individual claim, please fill out the form below or call us at 888-987-9991.
UPDATE: July 29, 2019. A class action lawsuit was filed on July 24, 2019 against Eagle Bank alleging that Eagle Bank and certain officers and directors committed securities fraud by making materially false and misleading statements to investors. Specifically, the class action lawsuit against Eagle Bank alleges that the Bank and the individual defendants “made false and/or misleading statements and/or failed to disclose that: (i) Eagle Bancorp’s internal controls and procedures and compliance policies were inadequate; (ii) the foregoing shortcoming created a foreseeable risk of heightened regulatory scrutiny and the need for the Company undertake its own internal investigations; and… Read more »