Green Dot investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Green Dot identifies itself as a financial technology leader and bank holding company with a mission to “reinvent banking for the masses.” Green Dot operates a platform referred to as “Banking as a Service” or “BaaS” to provide banking and financial services products to consumers under brand names such as Green Dot, GoBank and RapidPay. Green Dot’s products and services include, among others, deposit account programs, branded reloadable prepaid debit cards, consumer checking accounts, small business checking accounts, branded gift cards, and secured credit cards.
The Class Period commences on May 9, 2018, when, after market close, Green Dot released its financial and operating results for the first fiscal quarter ended March 31, 2018.
According to the complaint, on May 8, 2019, after market close, Green Dot released its financial and operating results for the first fiscal quarter ended March 31, 2019. Therein, Green Dot suddenly disclosed a large “investment in growth for the purpose of aggressively marketing new products.” Following this news, the stock price declined from a close of $63.27 per share of Green Dot Class A common stock on May 8, 2019, to a close of $46.56 per share on May 9, 2019, a drop of approximately 26.41 percent.
Then, on August 7, 2019, after market close, Green Dot released its financial and operating results for the second fiscal quarter and six months period ended June 30, 2019. Therein, Green Dot disclosed additional problems with the legacy products and reduced its fiscal year outlook. Following this news, the stock price declined from a close of $47.26 per share of Green Dot Class A common stock on August 7, 2019, to a close of $27.42 per share on August 8, 2019, a drop of approximately 41.98 percent.
Finally, on November 7, 2019, after market close, Green Dot released its financial and operating results for the third fiscal quarter and nine month period ended September 30, 2019. During the conference call to discuss the results, Green Dot’s Chief Executive Officer revealed that the continuing year-over-year decline of accounts in its active consumer business approximated 620,000 and were mostly “onetime use accounts.” Following this news, the stock price declined from a close of $29.95 per share of Green Dot Class A common stock on November 7, 2019, to a close of $24.54 per share on November 8, 2019, a drop of approximately 18.06 percent.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Green Dot’s strategy to attract “high-value” long-term customers was at the expense of “one and done” customers; (2) Green Dot’s “one and done” customers represented a significant source of revenues in its legacy segment; (3) consequently, Green Dot’s strategy was self-sabotaging; and (4) as a result of the foregoing, the defendants’ statements about its business and operations were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than February 18, 2020 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
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