Migliaccio & Rathod LLP is investigating whether former PacWest Bancorp shareholders received misleading or incomplete information about Banc of California’s financial condition and investment risks before the companies’ 2023 merger.
In 2023, Banc of California completed its merger with PacWest Bancorp. Former PacWest shareholders received approximately 0.6569 Banc of California shares for each PacWest share they owned.
The transaction was presented as creating a stronger California banking institution with improved liquidity, a more favorable funding structure, and significant earnings potential.
However, Banc of California subsequently reported substantial losses associated with additional restructuring activity.
These developments raise questions about whether PacWest shareholders received adequate information concerning the financial risks remaining in the combined bank’s investment and loan portfolios.
Migliaccio & Rathod is investigating whether merger-related disclosures failed to adequately describe material interest-rate exposure, securities portfolio losses, or commercial real estate lending risks that existed before the transaction.
Shareholders May Have Experienced:
- Receiving Banc of California shares in exchange for PacWest shares;
- Relying on representations concerning the combined bank’s financial strength and profitability;
- Experiencing investment losses following the merger;
- Holding shares as the bank reported substantial securities and loan losses; or
- Discovering that significant financial risks remained following the original merger-related restructuring.
Potential Claims May Include:
- Material misrepresentations or omissions in merger-related disclosures;
- Failure to disclose material investment or loan portfolio risks;
- Misleading representations concerning financial condition or expected profitability; or
- Violations of federal securities laws.
Signs You May Be Affected:
- You owned PacWest Bancorp shares before its 2023 merger;
- You received Banc of California shares as merger consideration;
- You received or reviewed merger-related disclosures;
- You held Banc of California shares following the transaction;
- You experienced investment losses; or
- You have brokerage records documenting your PacWest holdings and Banc of California shares received.
If you have encountered these issues, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call.