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Advanta Corp.'s "RediReserve Variable Rate Certificates"

Summary of Case:

Scott + Scott, LLP Announces Investigation on Behalf of Purchasers of Advanta Corp.'s "RediReserve Variable Rate Certificates"

Scott + Scott is investigating potential legal claims available to purchasers of Advanta Corp.'s "RediReserve Variable Rate Certificates." Advanta Corp. issued and sold $500 million worth of "RediReserve Variable Rate Certificates" to the investing public between March 12, 2009 and November 8, 2009. Unbeknowst to investors, Advanta Corp. was experiencing a severe liquidity and financial crisis at the time, which resulted in Advanta Corp.'s filing for Chapter 11 bankruptcy protection on November 9, 2009.

The true facts at the Company were as follows: (a) Advanta's assets contained tens of millions of dollars worth of impaired credit card receivables for which the Company had not accrued losses; (b) prior to and during the class period, Advanta had been extremely aggressive in granting credit to customers without verifying the customers' ability to pay, to such a degree that by the summer of 2009, Advanta customers' default rate would be almost six times worse than industry average; (c) Advanta's manipulation of its cash rewards program angered customers and caused the Company to lose good, creditworthy customers; (d) Advanta's credit receivables were unduly risky due to the Company's practice of issuing credit cards to small business owners without, in many instances, verifying income; (e) defendants failed to properly account for Advanta's continuing delinquent customers and the credit trends in the Company's portfolio, resulting ultimately in large charges to reflect impairments; and (f) the Company was not on track to be profitable in 2008.

If you currently own or purchased Advanta Corp.'s "RediReserve Variable Rate Certificates" and would like additional information regarding this investigation or if you have information regarding the allegations against the company, please contact Please contact Scott + Scott at (800) 404-6694. There is no cost or fee to you.

Scott + Scott possesses significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and is currently litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.

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.