PacWest Bancorp (NASDAQ: PACW, PACWP)

This lawsuit is for anyone who acquired securities in PacWest Bancorp (NASDAQ: PACW, PACWP) from February 28, 2022 through May 3, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to tell investors the impact of the Fed’s interest rate hikes on the Company’s liquidity.

On May 3, 2023, Bloomberg published an article reporting that PacWest was “weighing strategic options including a sale” and that “[t]he sector has been under pressure as rising interest rates lowered the value of their longer-term investments while increasing the cost of funding and spurring depositors to move cash into higher-yielding money market funds.” Forbes also reported that “[h]igher interest rates intensify the spread of the latest bank failure virus that drives deposits out of vulnerable banks, tanks their stock prices, and ultimately prompts an FDIC-enabled rescue[,]” and “the big loss an acquirer would incur to mark down the value of some PacWest loans makes it unlikely a buyer will emerge for the entire bank.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in PacWest Bancorp (NASDAQ: PACW, PACWP) from February 28, 2022 through May 3, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.