NYCB Board, CEO Sued for Not Disclosing Lending, Signature Risks

New York Community Bancorp’s top brass allegedly concealed detrimental information about the bank’s deteriorating commercial real estate portfolio and its heightened operating risks following its acquisition of Signature Bridge Bank’s assets and liabilities, a shareholder lawsuit says.

NYCB CEO Thomas Cangemi and board members delayed disclosing that the bank’s financial results would be negatively impacted by higher net charge-offs and losses on its loans to office buildings, violating federal securities laws, according to the complaint filed Thursday in the US District Court for the Eastern District of New York.

They also used positive statements in press releases and company ...