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Case Status:    SETTLED
On or around 04/15/2022 (Date of last review)

Filing Date: April 03, 2017

According to the law firm press release, BofI Holding, Inc. operates as the holding company for Bank of Internet USA. The Bank provides consumer and business banking products in the United States.

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, Defendants made false and/or misleading statements and/or failed to disclose that: (i) BofI was engaged in unlawful conduct; (ii) the foregoing conduct, when it became known, would subject the Company to heightened regulatory scrutiny and potential criminal sanctions; and (iii) as a result, BofI’s public statements were materially false and misleading at all relevant times.

On March 31, 2017, pre-market, the New York Post published an article entitled “Feds probe Bank of Internet for possible money laundering,” disclosing that the Company was the subject of a probe led by the Justice Department and involving the Securities and Exchange Commission and the Treasury Department.

On this news, BofI’s share price fell $1.45 or 5.26%, to close at $26.13 on March 31, 2017.

On November 7, 2017, the Court appointed Lead Plaintiffs. Lead Plaintiffs filed an amended Complaint on February 20, 2018. Defendants filed a Motion to Dismiss the amended Complaint on April 6. On June 19, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to file an amended Complaint.

Plaintiffs filed an amended Complaint on July 10, 2018. Defendants filed a Motion to Dismiss the amended Complaint on August 17. On December 7, the Court granted Defendants' Motion to Dismiss, dismissing the Complaint with prejudice. On January 3, 2019, Lead Plaintiffs filed a Notice appealing the District Court's Order of Dismissal.

On November 3, 2020, the Court of Appeals affirmed in part, reversed in part, and remanded the case for further proceedings. The Mandate from the Court of Appeals took effect on January 22, 2021. Defendants filed a Motion to Dismiss the second amended Complaint on February 3. On March 2, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint.

The parties entered into a Stipulation and Agreement of Settlement on January 31, 2022.

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