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SAN FRANCISCO, CA / ACCESSWIRE / February 13, 2020 / Hagens Berman urges Green Dot Corporation (GDOT) investors who have suffered significant losses to submit their losses now to learn if they qualify to recover their investment losses. Only five days remain until the February 18, 2020 lead plaintiff deadline in a securities fraud class action that has been filed against the company and senior executives.
Class Period: May 9, 2018 - Nov. 7, 2019
Lead Plaintiff Deadline: Feb. 18, 2020
Sign Up: www.hbsslaw.com/investor-fraud/GDOT
Contact An Attorney Now: GDOT@hbsslaw.com
Green Dot Corporation (GDOT) Securities Class Action:
The Complaint alleges Defendants misled investors concerning Green Dot's business and operations.
More specifically, according to the Complaint, Green Dot, CEO Steven W. Streit, and CFO Mark Shifke misrepresented and concealed that: (1) Green Dot's strategy to attract "high-value" long-term customers was at the expense of "one and done" customers; (2) Green Dot's "one and done" customers represented a significant source of revenues in its legacy segment; and, (3) consequently, Green Dot's business strategy was self-sabotaging.
The truth about Green Dot's failed business strategy was revealed over a series of disclosures beginning on Feb. 21, 2019, when Green Dot reported poor FY 2018 financial results, which drove the price of Green Dot shares down about 10% that day.
Then, on May 9, 2019, the Company disappointed investors when it slashed earnings guidance and announced it would be dramatically increasing spending on technology and marketing to attract new users. This news caused a massive 26% drop in Green Dot's share price.
On Aug. 8, 2019, Green Dot announced another guidance reduction due to a steep decline in legacy prepaid card product line and the Company's delay in launching its newest BaaS product. This news caused Green Dot's shares to plummet another 42%.
On Nov. 7, 2019, CEO Streit blamed disappointing financial results for the third fiscal quarter and nine months ended Sept. 30, 2019 on the continuing year-over-year decline of accounts in its active consumer business approximating 620,000 and revealed these were mostly "one-time use accounts." This news caused Green Dot's shares to plummet over 18% on Nov. 8, 2019.
On Dec. 18, 2019, Defendants announced that CEO Streit and CFO Shifke would be leaving their positions effective Dec. 31, 2019. This news drove the price of Green Dot shares down as much as 15% during intraday trading that day and prompted certain analysts to issue sell ratings.
Recently, on Jan. 14, 2020, a Seeking Alpha contributor published an article concluding, "Green Dot (GDOT) looks like a raging dumpster fire to me." The contributor observed (1) "loan delinquency is skyrocketing in a booming economy where other banks are reporting robust consumer behavior," (2) "GDOT's active accounts are declining (down 5% in Q3 '19) due to competitive pressure," and, (3) "[w]ith the sudden departures last month, investors should heavily discount GDOT's product road map."
If you invested in Green Dot between May 9, 2018 and Nov. 7, 2019 (the "Class Period") and suffered significant losses, you may qualify to be a lead plaintiff - one who selects and oversees the attorneys prosecuting the case. Contact Hagens Berman immediately for more information about the case and being a lead plaintiff.
"We're focused on investors' losses and proving Defendants misled investors about Green Dot's growth prospects, asset quality, and existing account metrics," said Hagens Berman partner Reed Kathrein.
If you purchased shares of GDOT and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Green Dot should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email GDOT@hbsslaw.com.
About Hagens Berman
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SOURCE: Hagens Berman Sobol Shapiro LLP
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