LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz (“FRC”) announces an investigation on behalf of Green Dot Corporation (“Green Dot” or the “Company”) (NYSE: GDOT) investors concerning the Company and its officers’ possible violations of federal securities laws.
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On February 20, 2019, Green Dot CEO Steven W. Streit revealed during the FY 2018 conference call that the Company’s strategy of attracting “high-value” long-term customers at the expense of “one and done” customers was self-sabotaging, stating, “…that we are somewhat a victim of our own success in converting more and more of our quarterly active accounts to direct deposit active accounts.” These “one and done” customers represented a significant source of revenue in the Company’s legacy segment.
On this news, Green Dot’s share price fell $7.47 per share, or nearly 10%, to close at $67.20 per share on February 21, 2019, thereby injuring investors.
Then, on May 8, 2019, the Company disclosed a large “investment in growth for the purpose of aggressively marketing new products.”
On this news, Green Dot’s share price fell $16.71 per share, or nearly 26%, to close at $46.56 per share on May 9, 2019, thereby injuring investors further.
Then, on August 7, 2019, Green Dot reported an “accelerated loss of unit sales in [its] prepaid product lines, resulting in lower active accounts from both non-reloading customers and cash reloading customers.
On this news, Green Dot’s share price fell $19.84 per share, or nearly 41%, to close at $27.42 per share on August 8, 2019, thereby injuring investors further.
Finally, on November 7, 2019, the Company revealed a decline of 620,000 accounts in its active consumer business, mostly “one-time use accounts.”
On this news, Green Dot’s share price fell $5.41 per share, or nearly 18%, to close at $24.54 per share on November 8, 2019, thereby injuring investors further.
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If you purchased Green Dot securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of FRC, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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