The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Comerica Incorporated (CMA) Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Comerica Incorporated (“Comerica” or the “Company”) (NYSE: CMA) securities between February 9, 2021 and May 29, 2023, inclusive (the “Class Period”). Comerica investors have until October 20, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On May 29, 2023, American Banker reported that it had obtained internal documents from Comerica showing officials privately acknowledging compliance failures related to the Company’s operation of a Treasury Department program that provides federal benefits on prepaid cards to millions of unbanked Americans.

On this news, Comerica’s stock price fell $1.40, or 3.6%, to close at $37.59 on May 30, 2023, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Comerica failed to provide meaningful oversight over the vendors to whom it contracted out day-to-day operations of the Direct Express program, a system through which it is contracted to provide federal benefits on debit cards to millions of Americans without bank accounts; (2) as a result of violations in the day-to-day operations of Direct Express, including handling fraud disputes and allowing sensitive data to be handled out of a vendor’s office in Pakistan, Comerica was not in compliance with the Federal Contract, and knew it was not in compliance; (3) Comerica knew and failed to disclose that it was in potential violation of Regulation E due to inadequate fraud prevention in the Direct Express program and responses to instances of fraud, and; (4) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Comerica securities during the Class Period, you may move the Court no later than October 20, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Comerica 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 The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], 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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