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More investors sue Banc of California over blog allegations

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More investors sue Banc of California over blog allegations

In addition to a Jan. 23 lawsuit, Irvine, Calif.-based Banc of California Inc. faces more complaints in connection to its alleged ties to Jason Galanis, who has been charged with market manipulation and several counts of fraud.

A class-action lawsuit filed Jan. 26 alleged that the company and its executives, including former CEO Steven Sugarman and former CFOs Ronald Nicolas Jr. and James McKinney, failed to disclose the ties they had with Galanis, which led to market value losses and damages for the company.

On Oct. 18, 2016, an anonymous blogger accused the company's senior executives and board members of having ties with Galanis. The company then formed a special committee and hired law firm WilmerHale to conduct an independent investigation, through which no evidence of connection with Galanis has been found to date. In late January, the company made announcements regarding an SEC investigation into some of the allegations, and the resignation of Chairman and CEO Steven Sugarman.