Finance

NYCB Hit With First Investor Lawsuit Over Share Price Collapse

Bank announced massive possible losses in Jan. 31 earnings
NYCB shares have fallen more than 60% over the past week

WATCH: New York Community Bancorp has reportedly been reaching out to investors for capital to finance a large portfolio of residential mortgages. Matthew Monks reports.Source: Bloomberg

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By Patricia Hurtado

February 7, 2024 at 5:11 PM UTC

This article is for subscribers only.

New York Community Bancorp is facing the first of what are likely to be several securities fraud lawsuits alleging the bank and its top executives misled shareholders about the health of its commercial real estate loan portfolio.

Shareholder Walter Edward Lemm, Jr. filed a proposed class action Tuesday in federal court in Brooklyn, New York. Along with the bank itself, the suit names NYCB Chief Executive Officer Thomas Cangemi and Chief Financial Officer John Pinto as defendants.