Bofi Holding Reacts To Volatility In Stock Price

Bofi Holding, Inc. BOFI reacted to the recent volatility in its share price movement. The company indicated that it continued to be target of anonymous short-seller with a motive to manipulate the market in a veiled effort to gain themselves at the cost of the company shareholders.

Bofi Holding said that after a closer examination, the anonymous pieces were based on speculation, innuendo and outright misrepresentations. The company pointed out that the latest hit piece, which was posted on a blog, claimed that a lawsuit raised fresh allegations against the company. However, it termed as an old news.

In a statement, the company said "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."

Bofi Holding statement stated further that "What the anonymous short-sellers and the strike suit attorneys fail to highlight is that BofI, like other banks, is regularly examined by its federal regulators, external auditors, and internal auditors. The absence of public enforcement actions highlight how disconnected these allegations are from the reality of BofI's highly compliant and top-performing business."

The company indicated that it would defend itself and would continue to focus on delivering positive earnings growth while maintaining its strong regulatory relationships and risk-focused culture.

On Monday, the stock jumped 12.3 percent.