Governance & Derivative

Hanmi Financial Corporation (NasdaqGS: HAFC)

Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Hanmi Financial Corporation (NasdaqGS: HAFC).  

On August 12, 2019, the Company disclosed that it was unable to file timely its Form 10-Q for the quarter ending June 30, 2019, “because the Company and its auditor are evaluating the classification of a single $40.7 million credit relationship…as well as a possible internal control deficiency primarily relating to construction lending, which may affect prior periods.”  On August 22, 2019, the Company announced it had received a notice from NASDAQ that the Company was no longer in compliance with NASDAQ rules due to its untimely quarterly disclosure and was in danger of being delisted. Then, on October 4, 2019, the Company disclosed it had moved the entire $40.7 million loan relationship into nonaccrual status, lowered its rating, and would take a $15.7 million provision for loan and lease losses, which it ultimately increased to $25.2 million total.

Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. Recently, the court presiding over that case denied the Company’s motion to dismiss, allowing the case to move forward.

KSF’s investigation is focusing on whether Hanmi’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.  If you have information that would assist KSF in its investigation, or have been a long-term holder of Hanmi shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or fill out the form on this page.