…does anyone know whether the ongoing litigation was mentioned and, if so, what management said about it?
The following is Garrabrants statement from the transcript regarding this, all sounds good to me…“one of the trolls”, love it:
I’ll now provide a brief update on our litigation. As I said last quarter, I’ll not spend much time on this, because these lawsuits are old news. The events alleged by disgruntled and apparently from his latest court filing, now chronically unemployed former Junior employee Erhart happened two years ago by his account. One of the world’s largest law firms conducted an independent investigation of his allegations and found his allegations to be without factual basis and cleared management of the alleged wrongdoing.
Subsequently, the Bank has completed two record-setting fiscal years, two successful quarters after the close of our most recent record-setting fiscal year, close two deposit acquisitions that both required regulatory approval, successfully completed three mid-cycle examinations, two full annual examinations, multiple Federal Reserve regulatory examinations, and received regulatory non-objection in the last six months to launch a refund advance product with H&R Block.
The Bank remains in a strong regulatory standing with no enforcement actions, has not been fined a single dollar of any regulatory agency, and is not been required to modify its products or business practices. Additionally, we currently do not foresee any future impact to the underlying business as a result of these frivolous lawsuits and the short seller Internet trolls fake news hit pieces.
Our management team and employees remain focused on running the business. However, despite all the time that is passed and all the positive results in our business since these outright fabrications have been published in lawsuits and Internet troll fake news hit pieces, we still see activity from at least one of the trolls.
Recently, an attorney who represents one of the trolls, who wrote many defamatory fake news blogs over the last couple of years called under false pretenses one of our largest shareholders pretended to be a mutual fund interested in investing in BofI and asking for information about that shareholders current ownership.
I raise this issue to note of the short-selling conspiracy is likely still active. All shareholders should be alert for suspicious activity and report this activity to us. We are dedicated to holding these individuals and funds accountable for their actions, and each report of their misbehavior will assist us in holding them accountable.
