NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Green Dot Corporation (“Green Dot” or the “Company”) (NYSE: GDOT) securities during the period from May 9, 2018 through November 7, 2019 (the “Class Period”). Investors have until February 17, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Green Dot’s strategy to attract “high-value” long-term customers was at the expense of “one and done” customers; (ii) Green Dot’s “one and done” customers represented a significant source of revenues in its legacy segment; and (iii) consequently, Green Dot’s strategy was self-sabotaging.
On February 20, 2019, CEO Steven W. Streit stated “we are somewhat a victim of our own success in converting more and more of our quarterly active accounts to direct deposit active accounts.” On this news, the price of Green Dot shares fell $7.47, or 10.0%, to close at $67.20 on February 21, 2019.
On May 8, 2019, Green Dot suddenly disclosed a large “investment in growth for the purpose of aggressively marketing new products.” On this news, the price of Green Dot shares fell $16.71, or 26.4%, to close at $46.56 on May 9, 2019.
On August 7, 2019, Green Dot disclosed additional problems with the legacy products and reduced its fiscal year outlook. On this news, the price of Green Dot shares fell $19.84, or nearly 50%, to close at $27.42 per share on August 8, 2019.
On November 7, 2019, Green Dot revealed a decline of 620,000 accounts in its active consumer business. On this news, the price of Green Dot shares fell $5.41, or 18.1%, to close at $24.54 on November 8, 2019.
Finally, on December 18, 2019, Green Dot announced the retirement of both its CEO and CFO. On this news, the price of Green Dot shares fell $2.68, or 10.4%, to close at $23.18 on December 19, 2019.
If you acquired Green Dot securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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