Provident Financial Services, Inc. (PFS)
Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Provident Financial Services, Inc. (PFS)
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Provident Financial Services, Inc. (“Provident” or the Company”) (NYSE: PFS). The investigation concerns whether Provident and certain of its officers and/or directors have violated federal securities laws.
On April 27, 2018, Provident released its financial results for the first fiscal quarter of 2018, disclosing “deterioration in selected commercial credits, including a $15.4 million credit to a commercial borrower” that had filed for bankruptcy in March 2018. Provident further disclosed that the Company had established a $2.5 million specific reserve for this impaired loan. On July 5, 2018, Provident disclosed that the Company expected an additional reserve would be required for the remaining balance of the previously disclosed $15.4 million credit, and that its net income for the quarter ended June 30, 2018 would be reduced by up to $9.3 million, after tax, or up to $0.14 per diluted share. Then, on July 27, 2018, pre-market, Provident released its financial results for the second fiscal quarter of 2018, disclosing that two additional loans from another commercial borrower became impaired during the quarter, leading to a net charge-off of $4 million. Provident’s Chairman, President, and Chief Executive Officer (“CEO”), Christopher Martin (“Martin”), stated that the losses “were primarily driven by two commercial relationships which we believe involved borrower fraud in each instance.” On this news, Provident’s stock price fell $1.46 per share, or 5.27%, to close at $26.23 per share on July 27, 2018. Later, in December 2019, certain Provident emails were made public during the course of litigation in New York state court, which indicated that Provident was aware of the fraudulent nature of and/or risks posed by at least one of its failed loans. Specifically, Provident executives and top-level management, including CEO Martin, seemingly ignored multiple red flags regarding a potential loan to Lotus Exim International (“Lotus”) before ultimately extending a $17 million loan to Lotus.
If you are aware of any facts relating to this investigation, or purchased Provident shares, you can assist this investigation by contacting Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.