NEW YORK (TheStreet) -- BofI (BOFI) stock is tanking 16.63% to $19.27 on heavy trading volume this afternoon after the Houston Municipal Employees Pension System filed a class action suit against the bank and some of its executives.
BofI allegedly engaged in illegal lending practices, violated federal laws in identifying its customers and was unable to maintain adequate internal controls, according to the plaintiff.
The filing references a number of interviews with anonymous former employees who back the allegations.
About 2.95 million shares of BofI have been traded so far today, well above the company's average trading volume of roughly 883,280 shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
BofI's strengths such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: BOFI
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.