BARCLAYS PLC (BCS) SHAREHOLDER CLASS ACTION ALERT: Bernstein Liebhard LLP Announces that a Securities Class Action Lawsuit Has Been Filed Against Barclays PLC (BCS)
Did you lose money on investments in Barclays? If so, please visit Barclays PLC Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or firstname.lastname@example.org to discuss your rights.
New York, New York--(Newsfile Corp. - September 30, 2022) - Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Barclays PLC ("Barclays" or the "Company") American Depositary Receipts ("ADRs") between February 18, 2021 and March 25, 2022, inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the Southern District of New York and alleges violations of the Securities Exchange Act of 1934.
Barclays is a British universal bank, offering consumer banking and payments services in the United Kingdom ("U.K."), United States ("U.S."), and Europe, as well as global corporate and investment banking services.
Barclays 2020 Annual Report on Form 20-F, filed with the SEC on February 18, 2021 ("2020 Barclays 20-F"), and 2021 Annual Report on Form 20-F, filed with the SEC on February 23, 2022 ("2021 Barclays 20-F"), informed investors that Barclays' internal controls over financial reporting were effective.
However, these statements were materially false and misleading, or failed to disclose material information necessary to make statements in the Form 20-Fs not misleading, in violation of Section 10(b) of the Exchange Act and Rule 10b-5.
As Barclays has since admitted, during the Class Period, Barclays internal controls over financial reporting were not effective, and there was a material weakness in those controls, due to the fact that starting on February 18, 2021, BBPLC, a wholly owned subsidiary of Barclays, issued and sold approximately $17.64 billion in unregistered securities over and above the maximum amount of securities registered in two BBPLC shelf registration statements, and the fact that the over-issuance was not immediately discovered.
Barclays 2021 quarterly earnings releases and 2021 20-F were also materially false and misleading, or failed to disclose material information necessary to make the statements made therein not misleading because, among other reasons, (a) they failed to disclose the over-issuance, and that BBPLC was violating U.S. securities laws and/or SEC regulations, subjecting Barclays to legal liability and claims of rescission, and (b) as a result, Barclays' reported litigation and conduct expenses and total operating expenses were understated, and Barclays' reported net profit was overstated.
On March 28, 2022, before the trading market for Barclays ADRs opened for the day, Barclays announced the over-issuance for the first time, that BBPLC had issued approximately $15.2 billion in unregistered securities under an August 2019 shelf registration statement, that BBPLC would commence a rescission offer for those unregistered securities, and that Barclays expected the rescission losses to be c.£450m. This disclosure revealed to the market not only the fact of the over-issuance and Barclays liability for claims of rescission, but that Barclays did not have adequate internal controls to account for issued securities and prevent such an over-issuance of unregistered securities tied to a shelf registration statement.
On this news, Barclays' ADR price fell $0.96 per ADR to close at $8.09 per ADR on March 28, 2022.
Then, on July 28, 2022, before the trading market for Barclays ADRs opened for the day, Barclays issued interim financial results for the quarter ending June 30, 2022, and announced for the first time that BBPLC had also over-issued unregistered securities under a second BBPLC shelf registration statement. The July 28, 2022 financial results announcement also informed investors that Barclays had provisioned "£1,592m [approximately $1.940 billion] (December 2021: £220m) related to the overissuance of structured notes and £165m [approximately $201 million] (December 2021: nil) related to liabilities that could be incurred arising out of ongoing discussions in respect of a potential SEC resolution."
On this news, Barclays' ADR price fell $0.41 per ADR to close at $7.48 per ADR on July 28, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than November 22, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or otherwise acquired Barclays ADRs, and/or would like to discuss your legal rights and options please visit Barclays PLC Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or email@example.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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