PHILADELPHIA--(BUSINESS WIRE)--Kaskela Law LLC announces that it is investigating Blue Ridge Bankshares, Inc. (NYSE: BRBS) ("Blue Ridge") on behalf of the company's long-term shareholders.
Recently, an amended securities fraud complaint was filed against Blue Ridge on behalf of investors who purchased shares of the company's stock between February 3, 2023 and October 31, 2023. According to the complaint, during that time period Blue Ridge and certain of the company's senior executive officers issued a series of false and misleading statements about the company's business, operations and prospects.
On April 27, 2023, Blue Ridge issued a press release reporting its First Quarter 2023 financial and operational results. Therein, the company reported that nonperforming loans had increased from $18.6 million as of the end of 2022 to $30.7 million as of the end of the First Quarter 2023, primarily because of two commercial loans which Blue Ridge had belatedly recognized as nonaccrual in Q1 2023. Following this news, shares of Blue Ridge's stock fell $2.80 per share, or over 28% in value, over the following week to close on May 4, 2023 at $7.14 per share.
Then, on July 31, 2023, Blue Ridge issued a press release reporting its Second Quarter 2023 financial and operational results. Therein, the company reported that it had categorized $86.1 million in loans as non-performing as of June 30, 2023. Following this news, shares of Blue Ridge's stock fell an additional 8.5% in value, to close on July 31, 2023 at $8.43 per share.
Finally, on October 31, 2023, Blue Ridge filed a Form 8-K with the U.S. Securities and Exchange Commission instructing investors not to rely on its previously issued financial reports for Fiscal Year 2022, First Quarter 2023 or Second Quarter 2023. On this news, shares of Blue Ridge's stock fell an additional 33% in value, to close on November 1, 2024 at $2.09 per share.
The investigation seeks to determine whether the members of Blue Ridge's board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Blue Ridge shareholders who purchased or acquired their BRBS shares prior to February 3, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750 for additional information about this investigation and their legal rights and options. Alternatively, investors may submit their information to the firm by clicking on the following link (or by copying and pasting the link into your browser):
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Contacts
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
(skaskela@kaskelalaw.com)
Adrienne Bell, Esq.
(abell@kaskelalaw.com)
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
