NYCB Potentially Misrepresented Offering Material to Former Flagstar Stockholders during Merger

A screen shows downward trend on an investment platformShub & Johns launches investigation into New York Community Bank (“NYCB”) on behalf of former Flagstar stockholders who were potentially misled by NYCB into securing NYCB common stock based on a registration statement and offering material issued by NYCB that may not have been completely true or accurate, or possibly containing material misrepresentations of the common stock. This misrepresentation possibly influenced former Flagstar employees to purchase NYCB common stock during the company’s merger only for the price and value of the common stock to drop substantially in recent months.

In violation of Section 11 of the Securities Act of 1933, former Flagstar employees who purchased New York Community Bank common stock based upon the allegedly misrepresented registration statement and offering materials put out by NYCB may have incurred losses during the fall of the NYCB common stock. It is the responsibility of the stock issuer, in this case New York Community Bank, to accurately represent the registration statement and offering materials presented to potential stockholders, including providing truthful and accurate information on the current and future health of the common stock. Based on the alleged misrepresentations and omissions of NYCB, the company would be liable for the damages experienced by affected former Flagstar employees.

Are you a former Flagstar employee who acquired New York Community Bank common stock pursuant to the allegedly misrepresented offering material and registration statement put out by NYCB? Did you lose funds as a result of these alleged omissions and misrepresentations? Let us know! Fill out the attached form and join the Shub & Johns investigation today!

NYCB Securities Violation Intake Form

Have you been affected?
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