An investigation on behalf of investors of Banc of California Inc (NYSE:BANC) shares over potential securities laws violations by Banc of California Inc and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Banc of California Inc (NYSE:BANC) concerning whether a series of statements by Banc of California Inc regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

On October 18, 2016, an article was published claiming, among other things, that certain Banc of California insiders had undisclosed ties to individuals previously accused of involvement with the collapse of Gerova Financial.

On January 23, 2017, Banc of California Inc announced the resignation of its CEO, Steven A. Sugarman, and that the United States Securities and Exchange Commission (SEC) had opened an investigation into whether the Company had misled investors in its response to the October 2016 report disclosing a connection between the Banc of California and an alleged fraudster named Jason Galanis.

On January 23, 2017, a lawsuit was filed against Banc of California Inc (NYSE:BANC) over alleged securities laws violations. The plaintiff claimed that the defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects, including that the Company had extensive ties to an alleged fraudster named Jason Galanis (Galanis), that, given Galanis history, the Companys ties to Jason Galanis created substantial regulatory risk, that revelation of Jason Galanis ties to the Company could cause a substantial decline in the market price of the Companys securities, that the Company allegedly misled investors concerning the Companys connections with Jason Galanis, and that, as a result of the foregoing, Defendants positive statements about Banc of Californias business, operations, and prospects, were false and misleading and/or lacked a reasonable basis. In a September 6, 2017 order, the court denied in part Banc of California's motion to dismiss in In re Banc of California Securities Litigation.

On December 8, 2017, it was reported that a former Banc of California employee had filed a lawsuit against the bank alleging, in part, that revenue generated by the Company in 2016 was improperly carried over to the following year in order to inflate 2017 profits, and that the Company had ignored its former Chief Financial Officer's use of Company funds to patronize strip clubs.
Shares of Banc of California Inc (NYSE:BANC) declined on December 8, 2017, to $20.45 per share.