saw a spreadsheet that contained as many as 200 accounts without tax identification numbers
It may be true that he say this spreadsheet and that the spreadsheet contained no SSNs. However, this is not proof that the bank doesn’t have the SSNs elsewhere. There are multiple explanations.
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BOFI is skirting the rules.
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BOFI is not skirting the rules. The ex-employee is disgruntled.
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BOFI is not skirting the rules. The ex-employee is working with short sellers in order to manipulate the stock price.
There are other explanations. I think that it would be impossible to prove wrongdoing on BOFI’s part without another audit/investigation into the bank;s records. So I ask these questions:
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Can this lawsuit trigger the bank’s regulators to start a new investigation of the bank?
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Can the court/plaintiff’s attorneys subpoena the banks records?
If the answer to either is yes then the doubt will remain and we could see stock price stay low or drop lower until this is cleared up and no wrongdoing is shown. If wrongdoing is shown then there are 2 questions:
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What is the extra risk exposure to BOFI and what is the direct or indirect impact on the bank’s financial position and prospects?
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Can we trust management in the future (for they would have lied and broken the law)? Do we want to be invested in a bank that commits such acts?
Chris