Eagle Bancorp, Inc.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Companys business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Eagle Bancorps internal controls and procedures and compliance policies were inadequate; (ii) the foregoing shortcoming created a foreseeable risk of heightened regulatory scrutiny and the need for the Company undertake its own internal investigations; and (iii) as a result, the Companys public statements were materially false and misleading at all relevant times. On July 17, 2019, Eagle Bancorp disclosed rising legal costs stemming from ongoing internal and government investigations of the Companys identification, classification and disclosure of related party transactions; the retirement of certain former officers and directors; and the relationship of the Company and certain of its former officers and directors with a local public official. On this news, Eagle Bancorps stock price fell $14.30 per share, or 26.75%, to close at $39.15 per share on July 18, 2019.