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BofI Holding, Inc. Issues Statement Regarding Share Price Volatility


BofI Holding, Inc. (BOFI) (“the Company”), parent of BofI Federal Bank, provided comments on recent volatility in its stock price. The Company continues to be the target of anonymous short-seller hit pieces designed to manipulate the market in a veiled effort to benefit themselves at the expense of BofI’s shareholders. Upon a closer examination, these anonymous pieces are based on speculation, innuendo, and outright misrepresentations. The latest hit piece, posted on a blog, claims that a “recent” lawsuit raised new allegations against BofI. In fact, this lawsuit is old news. Back on October 15, 2015, known “repeat player” strike suit attorneys filed a securities class action against BofI. An amendment to this old lawsuit has now been filed. After months of harassing our ex-employees, the lawyers’ amendment fails to raise any credible or systemic problems at BofI.

The amendment adds some unsubstantiated stories from “confidential” ex-employees mostly criticizing and complaining about the alleged lack of manners of their managers. The amended complaint also incorporates the anonymous blog posts of admitted short sellers, referring to them as “articles”, as if they were factual and unbiased. Just like the initial complaint, the amended complaint is riddled with numerous and material factual inaccuracies, erroneous conclusions, and mistaken applications of legal standards, which will be addressed in court.

What the anonymous short-sellers and the strike suit attorneys fail to highlight is that BofI...