BOFI, Shoes Two and Three

Another two shoes drop (class action lawsuits) as the ambulance chasers line up (Shakespeare was right):

Shoe One: Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by BofI investors. If you purchased shares of BofI prior to October 13, 2015, please visit the firm’s website at blah, blah, blah.…

Shoe Two: If you purchased BofI securities and have suffered a loss on your investment, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM blah, blah, blah.…

P.S. I think this is pure bunk but between the original legal action and the class action pile on, this could get uglier (down to $98 in after hours).

Will any analysts come forward in support of BOFI?

1 Like

Will any analysts come forward in support of BOFI?

One already has, FBR:

FBR Doesn’t See Employee Suit Against BofI (BOFI) Holding Much Merit; Reaffirms ‘Outperform’ Rating

FBR is out with commentary on BofI Holding, Inc. (Nasdaq: BOFI) following news that an employee brought a suit against the company.

Analyst Bob Ramsey noted that today’s NY Times article doesn’t cover much new ground and that the piece has “squishy” allegations.

Ramsey said: The former employee alleges that BOFI borrowers “may have included foreign national who might have been” on federal anti-money-laundering lists, but doesn’t actually say that there are any. It also states the employee “saw a spreadsheet” without tax ID numbers, but doesn’t go so far as to say that BOFI doesn’t have those Tax IDs. It also states that when the SEC sought information about 1 bank account that allegedly BOFI was “not forthcoming,” but doesn’t say how.

But, wait: The employee previously raised his concerns directly with federal regulators during BOFI’s most recent exam. The OCC was on-site with 20-30 employees for two months examining BOFI broadly, including this employee’s concerns. According to BOFI management, the allegations were found to be without merit, there was no action taken by the OCC, and the company has been told there is no further review and no further issues pending. Further, the OCC specifically complimented BOFI’s BSA practices, as BOFI does a multi-page write-up on each foreign borrower which accompanies the credit analysis.…

Not sure if the analyst read the actual court document or not however which is much more damning.



These class actions are noise and should be completely ignored. They are attorneys without better things to do.

Look at the underlying news and judge for yourself, but these people just pile on once negative news hits. They haven’t done any real investigation.

1 Like

those are not shoes, those are ambulance chasers. I swear 25% of the stocks I have owned end up in me receiving a lawsuit notice years later.

Shoe two would be “CEO resigns to spend more time with his family”. That would be a 100% sell signal.


Agreed, any stock that ever has a material drop gets sued.

Rosen Law Firm is a typical ambulance chaser. It has filed class action suits against a couple of the companies I invested in for no reason other than the companies missed a quarter and the stock price suffered a sizable drop. Not sure about the outcome of the suits but the companies in the suits are doing just fine now.

1 Like