Cohen Milstein Sellers & Toll PLLC, is conducting an investigation to determine whether Wilshire Bancorp, Inc. (“Wilshire Bancorp” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit has been filed in the U.S. District Court for the Central District of California by another law firm on behalf of all purchasers of the common stock of Wilshire Bancorp (NASDAQ:WIBC) between March 15, 2010 and March 16, 2011, inclusive (the “Class Period”). Wilshire Bancorp is the holding company of Wilshire State Bank, a California state-chartered bank which serves customers in Southern California, and has loan offices in Northern California, Washington, Oklahoma, Nevada and Texas. The complaint alleges that Wilshire Bancorp and certain of its officers and/or directors (“Defendants”) made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the complaint alleges that Defendants misrepresented and/or failed to disclose that: (1) WIBC had deficiencies in its loan underwriting, origination, and renewal processes and procedures; (2) WIBC was not adhering to its loan underwriting policies; (3) WIBC lacked adequate internal and financial controls; and (4) as a result of the foregoing, WIBC’s statements were materially false and misleading.
In its Annual Report for the year 2010, filed with the U.S. Securities and Exchange Commission on March 16, 2011, the Company revealed that, following an “extensive investigation” into “improper activities of a certain loan officer,” who was no longer with the Company, it had “discovered a significant deficiency in the operating effectiveness of loan underwriting, approval and renewal processes for those loan originations and asset sales associated with the former loan officer. Specifically, these processes lacked effective supervision and oversight and the Company’s operating efficiencies were hindered by the former chief executive officer and other management personnel. Our former chief executive officer resigned following the revelation of these activities to our board of directors.” The Company further reported that in addition to the resignation of its CEO, the Company’s Chief Lending Officer had resigned in March 2011 and its Chief Marketing Officer had been terminated in December 2010.
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