CASES
Meta Financial Group, Inc.
Class Period: May 14, 2009 to Oct 18, 2010
Lead Plaintiff Deadline: Dec 21, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Meta Financial Group, Inc. (CASH) ("Meta Financial" or the "Company") on behalf of all securities purchasers from May 14, 2009 through October 12, 2010, inclusive ("Class Period"), in the United States District Court for the Northern District of Iowa.
The complaint alleges that Meta Financial and certain of its officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934. In particular, the complaint alleges that on October 12, 2010, Meta Financial filed a report with the Securities Exchange Commission (the "SEC") announcing that the Office of Thrift Supervision ("OTS") had advised the Company, as early as October 6, that it has determined that Meta Financial had engaged in "unfair or deceptive acts or practices in violation of Section 5 of the Federal Trade Commission Act and the OTS Advertising Regulation in connection with the Bank's operation of the iAdvance program, and required the Bank to discontinue all iAdvance line of credit origination activity by October 13, 2010."
The Company's report further stated it is anticipated that the discontinuance of the iAdvance program and the potential discontinuance of the tax-related programs (which are subject to OTS approval) "will eliminate a substantial portion of [the Company's] gross profit (net revenue less direct expenses). In addition, the discontinuance of the iAdvance program may result in elevated rates of nonpayment on outstanding iAdvance loans." Following the publication of this report, the next trading day, shares of the Company dropped precipitously -- falling over $13.00 per share, to below $20.00 per share -- a decline of over 40%. Shares of Meta Financial continue to tumble and closed below $15.00 today.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.