NEW YORK--(BUSINESS WIRE)--The Rosen Law Firm, a global investor rights firm, announces that a class action lawsuit has been filed on behalf of all purchasers of American Express Company common stock (NYSE: AXP) from October 16, 2014 through February 11, 2015. The lawsuit seeks to recover investors’ losses under the federal securities laws.
To join the American Express class action, visit the firm’s website at http://www.rosenlegal.com/cases-690.html, or contact Phillip Kim, Esq. or Kevin Chan, Esq. toll-free at 866-767-3653 or via email at firstname.lastname@example.org or email@example.com for information on the class action.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY CHOOSE TO DO NOTHING AT THIS POINT AND REMAIN AN ABSENT CLASS MEMBER.
The complaint alleges that Defendants issued false and misleading statements concerning American Express’ business and prospects, including the position of its negotiations with U.S. Costco to renew its co-branding agreement, which was set to expire on March 31, 2016 and the financial repercussions of that agreement on American Express’ business. Consequently, American Express’ stock traded at artificially elevated prices, reaching a peak of almost $95 per share on December 29, 2014.
On February 12, 2015, American Express revealed that it had lost the U.S. Costco co-branding relationship, and that the financial cost of that loss would be severe. American Express announced that the U.S. Costco co-branding agreement accounted for 8% of the Company’s revenues in 2014, and that one in ten U.S. American Express cards were issued pursuant to the U.S. Costco co-branding arrangement. Additionally, 20% of its outstanding loans were made pursuant to that agreement. Lastly, because of the expiration of the U.S. Costco co-branding agreement, American Express stated that its 2015 and 2016 profits would suffer, and that it would be unable to make any progress on its prior efforts to boost earnings per share until 2017. Thus, American Express’ stock price dropped from a close of $85.40 per share on February 11, 2015, to close at $77.53 per share on February 13, 2015, a decrease of almost $8 per share.
If you wish to serve as lead plaintiff, you must move the Court no later than September 28, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation go to the firm’s website at http://www.rosenlegal.com/cases-690.html or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. or Kevin Chan, Esq. of The Rosen Law Firm toll-free at 866-767-3653 or via e-mail at firstname.lastname@example.org or email@example.com.
The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.