NEW YORK, March 16, 2023 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of First Republic Bank (“First Republic” or the “Company”) (NYSE: FRC).
If you would like to discuss our investigation, please contact us by emailing [email protected] or by calling (646) 315-9003, or click here.
Following the collapse of Silicon Valley Bank and others, on March 12, 2023, First Republic said it had “further enhanced and diversified its financial position through access to additional liquidity from the Federal Reserve Bank and JPMorgan Chase & Co.” Further, First Republic’s CEO and President stated “First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks.”
On March 13, 2023, First Republic led a decline in bank shares over concerns that it may not have sufficient liquidity, even after securing emergency funding from other institutions. A number of analysts downgraded the stock, including Raymond James, which stated “[d]espite the added liquidity sources, we believe deposit balances will remain under pressure in the immediate near term.”
On this news, First Republic’s stock price fell $50.55, or 61.8%, to close at $31.21 per share on March 13, 2023.
On March 16, 2023, The Wall Street Journal published an article entitled “First Republic Bank Executives Sold $12 Million in Stock in Months Before Crash,” reporting on the sale of millions of dollars of company stock by top executives in the two months before the bank’s shares plummeted. In total, the article reports that insiders, including the Company’s chief risk officer, executive chairman, chief credit officer, its president of private wealth management and chief executive sold $11.8 million worth of stock at prices averaging just below $130 per share.
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If you have any questions about this investigation, please contact:
Pamela Mayer
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
E-mail: [email protected]
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: [email protected]
