Fraud Investigations Launched into Option Care Health and Merchants Bancorp

Key Facts

1Levi & Korsinsky is investigating Option Care Health after a $225 million revenue guidance cut led to a 30% share price drop.

2Merchants Bancorp is under investigation following a disclosed 50% year-over-year decline in brokered deposits and rising funding costs.

Law firm Levi & Korsinsky has launched investigations into Option Care Health (OPCH) after the company slashed its annual revenue guidance by $225 million, triggering a 30% plunge in its share price. Simultaneously, Merchants Bancorp (MBIN) is under legal scrutiny following disclosures of a 50% year-over-year decline in brokered deposits and rising funding costs. These probes focus on potential securities fraud following Q1 2026 financial disclosures that appeared to contradict previous management growth narratives.

These legal actions arrive at a sensitive juncture for the healthcare and regional banking sectors, where investors are hyper-focused on the integrity of financial reporting. Per market data, while larger home healthcare peers have maintained relative stability, regional banks continue to face pressure from elevated deposit costs. The 30% drop in OPCH shares represents one of the most significant single-day declines in the sector this year, providing the primary catalyst for the current legal inquiry.

Traders are currently monitoring technical support levels for OPCH and MBIN following the heavy sell-off, with prices sitting at multi-month lows as of the close on May 13, 2026. Looking ahead at the economic calendar, while no company-specific events are scheduled for the next week, the Fed's Kashkari speech on May 7, 2026, remains a key macro catalyst for banking sentiment. Market participants will be watching for any formal rebuttals from the companies regarding the law firm's allegations.