First Republic Bank (NYSE: FRC) Securities Fraud Class Action

Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired First Republic Bank (“FRB”) (OTC: FRCB) common stock between October 13, 2021 and April 28, 2023, inclusive (the “Class Period”).

This action arises out of misrepresentations and omissions made by former executives of FRB and FRB’s auditor, KPMG LLP, about significant risks faced by FRB that led to its dramatic collapse in May 2023, the second largest bank collapse in U.S. history.

The complaint alleges that Defendants failed to disclose material risks associated with FRB’s deposit base and with respect to Defendants’ management of liquidity and interest rate risk. In contrast to Defendants’ representations regarding the safety and stability of FRB, the complaint alleges that Defendants relied on undisclosed sales practices to inflate FRB’s deposit and loan growth, including, for example, by offering abnormally low interest rates on long-duration, fixed-rate mortgages in exchange for clients making checking deposits. And contrary to Defendants’ representations that they actively and responsibly managed FRB’s interest rate risk, the complaint details how Defendants continually violated FRB’s interest rate risk management policies by concentrating FRB’s assets in long-duration, fixed rate mortgages. In 2022, when the Federal Reserve began rapidly raising interest rates, FRB’s low-interest, long-duration loans began to decline in value, creating a mismatch between FRB’s assets and liabilities. Internally, FRB’s interest rate models showed severe breaches of FRB’s risk limits in higher rate scenarios, and Defendants discussed potential corrective actions at risk management meetings. However, Defendants took no corrective action, continued to mislead investors about FRB’s interest rate risk, and only amplified the FRB’s risk profile by deepening the FRB’s concentration in long-duration loans.

Current Status of Case:
On June 9, 2025 the Court granted Defendants’ Motion to Dismiss for lack of subject matter jurisdiction. On July 9, 2025, Plaintiffs filed a Notice of Appeal. The appeal is currently being briefed by the parties and is ongoing.

For more information on the case and the Court’s Order, please visit our website at https://www.ktmc.com/featured-case/first-republic-bank.

If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at [email protected]. If you would like additional information about the suit, please click on the link “Submit Your Information” above and fill out the form as promptly as possible.  

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.