The Ninth Circuit Court of Appeals has reversed the District Court’s dismissal of the securities fraud class action lawsuit against BofI Federal Bank after finding that a related whistleblower suit and accounts by numerous other former employees, adequately pleaded fraud and scienter on the part of the Bank and its CEO.
In reversing the District Court’s dismissal, which had been entered purely on loss causation grounds, the Ninth Circuit held that adequately pleading loss causation in a securities fraud case does not require an outright admission or formal determination of fraud by a company. The securities fraud litigation will now move forward.
BofI Holding, Inc. Securities Class Litigation
Lieff Cabraser serves as lead counsel for court-appointed lead plaintiff, Houston Municipal Employees Pension System (“HMEPS”), in this securities fraud class action against BofI Holding, Inc. and certain of its senior officers. The action charges defendants with issuing materially false and misleading statements and failing to disclose material adverse facts about BofI’s business, operations, and performance.