According to the Complaint, Cadence is a financial holding company that focuses on middle-market commercial lending, complemented by retail banking and wealth management services, and purportedly provides banking services to businesses, high net worth individuals, and business owners.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. The Complaint alleges that specifically, Defendants failed to disclose to investors: (1) that the Company lacked adequate internal controls to assess credit risk; (2) that, as a result, certain of the Company’s loans posed an increased risk of loss; (3) that, as a result, the Company was reasonably likely to incur significant losses for certain loans; (4) that the Company’s financial results would suffer a material adverse impact; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On November 15, 2019, the Court issued an Order consolidating cases. On December 10, the Court issued an Order appointing Lead Plaintiff. On December 18, the Court approved Lead Plaintiff's selection of counsel. Lead Plaintiff filed an amended consolidated Complaint on January 31, 2020. Defendants filed a Motion to Dismiss the amended consolidated Complaint on March 4. On August 7, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice.