Cadence Bancorporation (Nasdaq: CADE)
A class action has been filed in the United States District Court for the Southern District of Texas on behalf of purchasers of Cadence Bancorporation (Nasdaq: CADE) securities during the period between July 23, 2018 to July 22, 2019, (the “Class Period”).
The Cadence class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse information about Cadence’s business, operations, and prospects. Specifically, defendants failed to disclose that Cadence lacked adequate internal controls to assess credit risk and that, as a result, certain of Cadence’s loans posed an increased risk of loss and Cadence was reasonably likely to incur significant losses on those loans, which would adversely impact Cadence’s financial results. As a result of this information being withheld from the market, Cadence securities traded at artificially inflated prices during the Class Period, with Cadence’s stock price reaching a high of more than $31 per share.
Then on July 22, 2019, Cadence announced disappointing second quarter 2019 financial results, including a decrease in adjusted net income of $24 million, or 31.8%, compared to the first quarter of 2019. According to Cadence’s Chief Executive Officer, the “‘results for the second quarter of 2019 . . . were unfortunately negatively impacted by higher credit costs including net charge-offs of $18.6 million and loan provisions of $28.9 million.’” On this news, the price of Cadence stock fell $3.75 per share, or over 19%, to close at $15.86 per share on July 22, 2019.
If you are a current shareholder and/or purchased stock during the period between July 23, 2018 to July 22, 2019, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.