Why Eagle Bancorp Inc. Stock Jumped on Monday
Shares of Eagle Bancorp Inc. (NASDAQ: EGBN) are up about 10% as of 11:15 a.m. EST on Monday after losing 24% of their value in active trading on Friday. Over the weekend, Eagle Bancorp put out two press releases responding to allegations made by Aurelius Value about insiders using the bank for their own personal profit.
Aurelius Value's report cast a negative light on the bank's internal controls, particularly as it relates to loans and credit lines extended to company insiders and to businesses in which the bank's insiders have a vested interest.
Eagle Bancorp published its first response to Aurelius Value after the market closed on Friday, writing that the report relies on "unsubstantiated claims in two pending lawsuits." It went on to say that "contrary to the misrepresentations by Aurelius, the loans identified in the piece were not made to the identified executive, and, in any event, were approved and disclosed (where required) in compliance with Regulation O."
Source: Fool.com
