According to the law firm press release, BofI Holdings, Inc. operates as the holding company for BofI Federal Bank, a provider of consumer and business banking products through the Internet in the United States. BofI Federal Bank’s most significant business is making mortgages to high-net worth individuals for the purchase of expensive properties though BofI Federal Bank’s Bank of Internet USA (“Bank of Internet”) brand.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, during the Class Period, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s internal controls were frequently disregarded; (ii) Bank of Internet’s borrowers included foreign nationals who should have been off-limits under federal anti-money-laundering laws; (iii) many Bank of Internet accounts lacked required tax identification numbers; (iv) Bank of Internet fired an internal auditor who raised the foregoing issues to management and to federal regulators; and (v) as a result of the above, the Company’s statements regarding its internal controls and other financial statements were materially false and misleading at all relevant times.

On February 1, 2016, the Court issued an Order consolidating Cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 15-CV-02324.

Lead Plaintiff filed a consolidated amended Complaint on April 11, 2016. Defendants filed a Motion to Dismiss the consolidated amended Complaint on May 11. On September 27, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.

Lead Plaintiff filed a second amended Complaint on November 25, 2016. Defendants filed a Motion to Dismiss the second amended Complaint on December 23. On May 23, 2017, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.

Lead Plaintiff filed a third amended Complaint on December 22, 2017. Defendants filed a Motion to Dismiss the third amended Complaint on January 19, 2018. On March 21, the Court issued an Order granting the Motion to Dismiss, dismissing the case with prejudice. On March 28, Lead Plaintiff filed a Notice appealing this decision.

On October 8, 2020, the Court of Appeals reversed the District Court's ruling and remanded the case to the District Court for further proceedings.

Lead Plaintiff filed a Motion for Class Certification on May 28, 2021. On August 24, the Court issued an Order granting Certification of a Class, Appointment of Class Representative, and Approval of Class Counsel.

On April 13, 2022, the parties entered into a Stipulation and Agreement of Settlement. The Court granted preliminary approval of the Settlement on June 14. On October 14, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

The Court issued an Order authorizing distribution of the net Settlement fund on August 16, 2023.