Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Green Dot Corporation (NYSE: GDOT).
On May 8, 2019, the Company disclosed an “erosion in the number of legacy product line, non-direct deposit active accounts,” that its strategy “to attract high-value long-term customers” at the expense of low value customers had negatively affected performance, and a $60 million investment “for the purpose of aggressively marketing our new products.” On August 8, 2019 the Company disappointed investors when it disclosed its 2Q2019 results including cuts to earnings guidance due to “an acceleration in declining unit sales in our legacy prepaid card product line combined with a later than expected launch of our new and limited product.” Then, on November 7, 2019, the Company announced its 3Q2019 results including a continuing decline in its active consumer business of approximately 620,000 accounts. Finally, on December 18, 2019, the Company disclosed the departure of both its Chief Executive Officer and Chief Financial Officer.
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws.
KSF’s investigation is focusing on whether Green Dot’s officers and/or directors breached their fiduciary duties to Green Dot’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Green Dot shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (email@example.com), or fill out the form on this page.