Shares of Irvine-based Banc of California Inc. soared 23% Thursday after it issued a statement saying an independent investigation exonerated the company of accusations by a blogger.
WilmerHale, a law firm with no prior relationship with the company, reported to the board that there were no legal violations and that Jason Galanis had no indirect or direct control or undue influence over the company, Banc of California said in a statement. The bank also said the inquiry found no loan, related party transaction, or any other circumstance had impaired the independence of any director.
Meanwhile, bank director Halle J. Benett reversed course and decided to seek re-election after all to the bank’s board, according to a filing with the U.S. Securities and Exchange Commission. He withdrew his name for re-election in December, citing personal reasons based on demands of his business activities.
Separately, Chad Brownstein, a co-founder of the bank and vice chair, announced he’ll retire from the seven-member board.
The company appointed a new director, Richard Lashley, co-founder of PL Capital Advisors LLC, which owns 6.9% of the company’s shares.
—Peter J. Brennan
