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Opus to Pay $17M to Settle Suit

Opus Bank (Nasdaq: OPB) is settling for $17 million a class-action shareholder lawsuit alleging the Irvine company misled investors about the quality of its loans.

Opus said insurance will cover the cost of the settlement with no effect on its income.

“We do not view the announcement as having any impact on the company’s fundamentals,” Keefe, Bruyette & Woods analyst Jacquelynne Chimera Bohlen wrote in a report to investors.

Opus expects a finalized agreement by early December; it must eventually be approved by a court.

Lead plaintiff Nancy Schwartz a year ago sued Opus, alleging misleading press releases about the quality of its lending from 2014 to 2016. The bank’s shares fell 21% after a 2016 third-quarter earnings report that included $38.8 million in charge-offs.

Los Angeles-based Glancy Prongay & Murray LLP, which has sued other publicly-traded companies, represented Schwartz.

Opus shares rose 2% in midday trading to an $898 million market cap. Shares have climbed 32% since April.

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Peter J. Brennan
Peter J. Brennan
With four decades of experience in journalism, Peter J. Brennan has built a career that spans diverse news topics and global coverage. From reporting on wars, narcotics trafficking, and natural disasters to analyzing business and financial markets, Peter’s work reflects a commitment to impactful storytelling. Peter’s association with the Orange County Business Journal began in 1997, where he worked until 2000 before moving to Bloomberg News. During his 15 years at Bloomberg, his reporting often influenced financial markets, with headlines and articles moving the market caps of major companies by hundreds of millions of dollars. In 2017, Peter returned to the Orange County Business Journal as Financial Editor, bringing his heavy business industry expertise. Over the years, he advanced to Executive Editor and, in 2024, was named Editor-in-Chief. Peter’s work has been featured in prestigious publications such as The New York Times and The Washington Post, and he has appeared on CNN, CBC, BBC, and Bloomberg TV. A Kiplinger Fellowship recipient at The Ohio State University, he leads the Business Journal with a dedication to uncovering stories that matter and shaping the local business community and beyond.
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