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Published December 23, 2024
Investors in Customers Bancorp were recently stunned when the Federal Reserve targeted the bank with a major enforcement action. After learning that the Fed had slammed Customers Bancorp for failing to follow federal anti-money laundering laws, investors quickly dumped their Bancorp shares and the stock lost 15% of its value in a day. Now, some of those investors are suing Bancorp to recover their losses.
In April 2024, Bancorp abruptly fired its Chief Financial Officer “for cause” but provided no other details. Then, in August, investors learned the truth: Bancorp had major problems complying with anti-money laundering laws and the Bank Secrecy Act. The Federal Reserve issued a press release announcing that it had targeted Bancorp with an enforcement action and demanded the bank implement a new risk management plan within sixty days. Investors quickly sold off Bancorp shares as the stock plummeted. Now, some of those angry investors are signing up for the class action lawsuit.