Thieler Law Corp, member of the Investor Attorney Network, is investigating whether certain officers and directors of Provident Financial Services Inc (NYSE: PFS) violated securities laws in connection with certain financial statements.
The investigation seeks to discover if possible claims on behalf of purchasers of the securities of Provident Financial Services Inc (NYSE: PFS) concerning whether a series of statements by Provident Financial Services Inc regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
On April 27, 2018, the Company revealed “deterioration in selected commercial credits, including a $15.4 million credit to a commercial borrower” that had filed for bankruptcy in March 2018. The Company established a $2.5 million specific reserve for this impaired loan.
On July 5, 2018, the Company revealed that it expected an additional reserve for the remainder of the $15.4 million credit and that its net income for the quarter ended June 30, 2018 would be reduced by up to $9.3 million.
On July 27, 2018, the Company reported a net charge-off of $4 million for two additional loans from another commercial borrower that became impaired during second quarter 2018. The Company’s Chief Executive Officer Christopher Martin stated that the losses “were primarily driven by two commercial relationships which we believe involved borrower fraud in each instance.”
On December 2019, certain Provident emails, which became public during the course of certain litigation, indicated that the Company was aware of the fraudulent nature of and/or risks posed by at least one of its failed loans. Specifically, Provident executives and top-level management, including CEO Martin, seemingly ignored multiple red flags and extended a $17 million loan to Lotus Exim International.
Based in Jersey City, New Jersey, and founded in 1839 Provident Financial Services Inc operates as the holding company for Provident Bank that provides various banking services to individuals, families, and businesses in the United States.
If you purchased shares of Provident Financial Services Inc (NYSE: PFS) on or before April 27, 2018, you should contact Thieler Law Corp at mail@thielerlaw.com or call +1 (619) 377 - 4324.
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