Green Dot Corporation
Class Period: Jan 26, 2012 to Jul 26, 2012
Lead Plaintiff Deadline: Sep 25, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against Green Dot Corporation ("Green Dot") behalf of all persons and entities who purchased the publicly traded common shares of GMR between January 26,2012 through July 26,2012. This case has been filed in the USDC - California (Central).
The complaint alleges that on July 26, 2012, after the market closed, Green Dot disclosed that it was updating its previously issued outlook for the remainder of the year to reflect the impact of new competition and new internal risk policies and controls. Specifically, the Company announced that the revised outlook reflects "the impact of new internal risk policies and controls to improve the security and quality of Green Dot's portfolio" and that the "reforecast also assumes that by later this year, many of Green Dot's retailers will start to sell competitive GPR products in addition to Green Dot's products." Moreover, the Company admitted that "[b]ecause we lack the historical data to accurately predict how [the new competition] will impact Green Dot's sales, we have taken what we believe to be a conservative view of any potential impact."
On this news, the Company's shares declined $14.26 per share, or 12 61.15%, to close on July 27, 2012, at $9.06 per share, on unusually heavy volume.
Throughout the Class Period, Defendants made false and! or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and!or failed to disclose: (1) that the Company's new internal risk policies and procedures were negatively impacting Green Dot's growth in new account activations; (2) that certain of Green Dot's retailers were planning to start
selling competitive GPR products in addition to the Company's products; (3) that the Company lacked historical data to accurately predict how these retailers selling of competitive GPR products would impact Green Dot's sales; and (4) that, as a result of the foregoing, the Defendants' positive statements about Green Dot's business, operations, and prospects, as well as those regarding Green Dot's revenue outlook for the 2012 fiscal year, lacked a reasonable basis.
As a result of Defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's securities, Plaintiff and other Class members have suffered significant losses and damages.
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.