Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired New York Community Bancorp, Inc. (“NYCB”) (NYSE: NYCB) common stock between July 27, 2022 and February 29, 2024, inclusive (the “Class Period”).
NYCB was a financial institution that primarily operated as a commercial real estate (“CRE”) loan lender to multi-family landlords and other non-residential properties in the New York metro area. After a dramatic four-month expansion, NYCB acquired Flagstar Bancorp, Inc. (“Flagstar”) and billions of dollars of assets of its collapsed competitor, Signature Bridge Bank (“Signature”), NYCB was pushed into a more heavily regulated banking class and was immediately subjected to heightened scrutiny.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Signature acquisition would not be immediately accretive to NYCB because it caused NYCB to be required to comply with materially enhanced prudential standards, including, among other things, risk-based and leverage capital requirements, and liquidity standards, and required that NYCB build capital, reinforce its balance sheet and strengthen its risk management processes; (2) NYCB failed to comply with the materially enhanced prudential standards; (3) NYCB overstated the quality of its commercial office loan assets; (4) NYCB was experiencing higher net charge-offs and deterioration in its commercial office portfolio than represented; (5) NYCB was reasonably likely to incur higher loan losses because it was experiencing higher net charge-offs and deterioration in its commercial office portfolio; (6) NYCB was reasonably likely to be forced to increase its allowance for credit losses due to its status as a Category IV bank; (7) NYCB's loan loss provisions were understated so it overstated quarterly earnings and/or understated quarterly losses; (8) NYCB failed to have adequate internal risk or disclosure controls and procedures; and (9) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On August 8, 2025, Defendants served their Motion to Dismiss the Amended Complaint. The Motion has been fully briefed and is pending decision before the Court. This action is ongoing.
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 info@ktmc.com. 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.