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Case Status:    DISMISSED    
On or around 06/22/2012 (Date of order of final judgment)

Filing Date: March 29, 2011

According to a press release dated March 29, 2011, the Complaint charges WIBC and certain of the Company's current and former executive officers with violations of federal securities laws. WIBC is the holding company of Wilshire State Bank, a California state-chartered bank that operates 24 branch offices in California, Texas, New Jersey and New York, and six loan production offices in Dallas, Houston, Atlanta, Denver, Annandale, Virginia, and Fort Lee, New Jersey, and is an SBA preferred lender nationwide.

The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning WIBC's business, operations and prospects were materially false and misleading. Specifically, the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company had deficiencies in its underwriting, origination, and renewal processes and procedures; (2) that the Company was not adhering to its underwriting policies; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the above, the Company's statements were materially false and misleading at all relevant times.

On March 16, 2011, WIBC disclosed that the Company had conducted an internal investigation with assistance of outside independent professional firms and the Company's internal audit department and discovered a significant deficiency in the operating effectiveness of loan underwriting, approval and renewal processes for those loan originations and asset sales associated with a former loan officer. Further, the Company disclosed that these processes lacked effective supervision and oversight and that the Company's operating efficiencies were hindered by the former chief executive officer and other management personnel.

As a result of this news, shares of WIBC declined $0.54 per share, more than 9%, to close on March 17, 2011, at $5.27 per share, on unusually heavy volume. The following day, WIBC shares further declined another $0.42, or 7.97%, to close on March 18, 2011, at $4.85.

On May 24, 2011, the plaintiff filed an Amended Complaint. On July 1, 2011, Judge Valerie Baker Fairbank granted the motion of Locals 302 and 612 of the International Union of Operating Engineers-Employers Construction Industry Retirement Trust for Appointment as Lead Plaintiff and Approval of Lead Counsel. On August 30, 2011, a Second Amended Class Action Complaint was filed. The defendants responded by filing several motions to dismiss the complaint on October 31, 2011.

On February 8, 2012, the Court issued an Order granting defendants' motions to dismiss with leave to amend. Plaintiffs were given 21 days to to file and serve a Third Amended Complaint. On March 5, 2012, the Court issued an Order dismissing this action without leave to amend.


Sector: Financial
Industry: S&Ls/Savings Banks
Headquarters: United States


Ticker Symbol: WIBC
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data

"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: C.D. California
DOCKET #: 11-CV-02645
JUDGE: Hon. Valerie Baker Fairbank
DATE FILED: 03/29/2011
CLASS PERIOD END: 03/16/2011
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 ·
  2. Law Offices of Howard G. Smith
    3070 Bristol Pike, Suite 112, Law Offices of Howard G. Smith, PA 19020
    215.638.4847 215.638.4867 ·
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 11-CV-02645
JUDGE: Hon. Valerie Baker Fairbank
DATE FILED: 08/30/2011
CLASS PERIOD END: 05/09/2011
  1. Cohen Milstein Sellers & Toll PLLC (New York)
    88 Pine Street, 14th Floor, Cohen Milstein Sellers & Toll PLLC (New York), NY 10022
    212.838.7797 212.838.7797 ·
  2. Cohen Milstein Sellers & Toll PLLC (Washington DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen Milstein Sellers & Toll PLLC (Washington DC), DC 20005
    202.408.4600 202.408.4600 ·
No Document Title Filing Date
—Related District Court Filings Data is not available