Bronstein, Gewirtz and Grossman, LLC Announces an Investigation Against Bank Of Montreal (BMO) and Encourages Investors to Seek Compensation for Alleged Wrongdoings

Rhea-AI Summary

Bronstein, Gewirtz & Grossman, is investigating potential claims against Bank Of Montreal (NYSE:BMO) on behalf of investors. The investigation follows BMO's Q3 2024 financial results, which revealed:

• Adjusted earnings per share of C$2.64 (US$1.96), missing consensus estimates for the third consecutive quarter
• Increased provision for credit losses to C$906 million, up from C$492 million in the same period last year
• A stock price drop of $5.47 per share (6.16%) to $83.30 on August 27, 2024

Jefferies downgraded BMO's stock to Hold from Buy following the news. Investors who purchased BMO securities are encouraged to assist the investigation.

Positive

• None.

Negative

• Missed earnings estimates for third consecutive quarter
• Provision for credit losses increased by 84% year-over-year
• Stock price fell 6.16% following Q3 2024 results
• Jefferies downgraded BMO stock from Buy to Hold

Insights

Financial Analyst

The investigation into Bank of Montreal (BMO) is a significant development that could have far-reaching implications for investors. The bank's missed earnings estimates for the third consecutive quarter, coupled with a substantial C$906 million provision for credit losses, signals potential underlying issues in their loan portfolio. This 84.15% increase in loss provisions year-over-year is particularly concerning, as it may indicate deteriorating asset quality or economic headwinds.

The market's reaction, with BMO's stock dropping 6.16%, reflects investor unease. The downgrade by Jefferies further compounds this negative sentiment. Investors should closely monitor BMO's risk management practices and the broader economic factors affecting their loan book. This investigation could lead to regulatory scrutiny or legal actions, potentially impacting BMO's financial stability and shareholder value in the long term.

Legal Expert

The investigation by Bronstein, Gewirtz & Grossman into Bank of Montreal raises serious legal concerns. While the specific allegations aren't detailed, the firm's focus on purchasers of BMO securities suggests potential violations of securities laws, such as inadequate disclosure or misrepresentation of financial health.

Investors should be aware that class action lawsuits in such cases can lead to significant settlements or judgments. However, the outcome is uncertain and litigation can be protracted. The involvement of a prominent securities litigation firm adds credibility to the investigation. Shareholders should carefully review their investment timeline and any potential losses before deciding to participate in any legal action. It's important to note that the investigation is in its early stages and no formal charges have been filed yet.

NEW YORK CITY, NY / ACCESSWIRE / August 29, 2024 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Bank Of Montreal ("BoM" or "the Company") (NYSE:BMO). Investors who purchased BoM securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/BMO.

Investigation Details

On August 27, 2024, BoM reported its financial results for the third quarter of 2024. Among other items, BoM reported adjusted earnings per share of C$2.64 (US$1.96), missing consensus estimates for the third consecutive quarter. The Company also increased its provision for credits loses to C$906 million, compared to C$492 million for the same period in the prior year. In response, Jefferies downgraded BoM's stock to Hold from Buy. On this news, BoM's stock price fell $5.47 per share, or 6.16%, to close at $83.30 per share on August 27, 2024.

What's Next?

If you are aware of any facts relating to this investigation or purchased BoM securities, you can assist this investigation by visiting the firm's site: bgandg.com/BMO. You can also contact Peretz Bronstein or his client relations manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.

There is No Cost to You

We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.

Attorney advertising. Prior results do not guarantee similar outcomes.

Contact

Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller
332-239-2660 | info@bgandg.com

SOURCE: Bronstein, Gewirtz & Grossman, LLC

View the original press release on accesswire.com

FAQ

What prompted the investigation into Bank of Montreal (BMO)?

The investigation was prompted by BMO's Q3 2024 financial results, which showed missed earnings estimates, increased provision for credit losses, and a subsequent stock price drop of 6.16%.

How did Bank of Montreal's (BMO) Q3 2024 earnings compare to estimates?

BMO reported adjusted earnings per share of C$2.64 (US$1.96), missing consensus estimates for the third consecutive quarter.

What was Bank of Montreal's (BMO) provision for credit losses in Q3 2024?

BMO's provision for credit losses increased to C$906 million in Q3 2024, compared to C$492 million for the same period in the previous year.

How did Bank of Montreal's (BMO) stock price react to the Q3 2024 results?

BMO's stock price fell $5.47 per share, or 6.16%, to close at $83.30 per share on August 27, 2024, following the release of Q3 2024 results.