NEW YORK, NY - 
(NewMediaWire) - March 1, 2024 - Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) reminds investors that a complaint has been filed on behalf of purchasers of the securities of New York Community Bancorp, Inc. (“NYCB” or the “Company”) (NYSE: NYCB) between March 1, 2023 and February 5, 2024, inclusive (the “Class Period”). Click Here to Join Investigation.
If you acquired NYCB securities and would like to discuss our investigation, please click here or contact us by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
On January 31, 2024, NYCB issued a press release reporting fourth quarter and full-year 2023 financial results, including a fourth quarter 2023 net loss of $252 million for the three months ended December 31, 2023 compared to net income of $207 million in the third quarter for the three months ended September 30, 2023. The Company indicated that its fourth quarter results were impact by “a $552 million provision for credit losses” compared with a $62 million provision for the third quarter and that this increase “is primarily attributable to higher net charge-offs, as well as, to address weakness in the office sector, potential repricing risk in the multi-family portfolio, and an increase in classified assets.”
On January 31, 2024, following this news, NYCB shares plummeted by $3.91 per share, or about 37.7%, to close at $6.47 per share on heavy trading volume.
On February 5, 2024 after the market close, Bloomberg reported, citing “people with direct knowledge of the matter,” that it had been “[m]ounting pressure from a top US watchdog” that “led to” New York Community Bancorp's “surprise decision to slash its dividend and stockpile cash in case commercial real estate loans go bad.” According to the Bloomberg article, “[t]he drastic financial moves . . . followed behind-the-scenes conversations with officials from the Office of the Comptroller of the Currency, the people said, asking not to be identified describing the confidential discussions.”
Following this news, the price of NYCB stock fell $1.20 per share, more than 22%, to close at $4.20 per share on February 6, 2024.
On February 29, 2024, after the class action case was filed, NYCB disclosed in a regulatory filing that its management "identified material weaknesses in the Company's internal controls related to internal loan review, resulting from ineffective oversight, risk assessment and monitoring activities." The Company also separately announced the replacement of NYCB’s long-time CEO and named new risk and audit executives.
WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
If you have any questions about this investigation, please contact:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
