BOSTON, Dec. 20, 2019 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors and whistleblowers nationwide, informs investors that there has been a class action lawsuit filed against Green Dot Corp (GDOT) and certain of its officers alleging violations of the federal securities laws. Class members interested in serving as lead plaintiff are required to move for appointment by February 17, 2020 and are encouraged to contact Block & Leviton LLP to learn more.
The class action complaint, which was filed in the Central District of California and captioned Koffsmon v. Green Dot Corp., et. al., No. 1:19-cv-05949 (C.D. Cal.), alleges that Defendants misled investors and failed to disclose that Green Dot’s efforts at attracting “high value” customers to its consumer banking products were resulting in the loss of so-called “low value” or “one-time use” customers – an important revenue stream for the Company.
The truth emerged on November 7, 2019, when Green Dot released its financial results for the third quarter and nine months period ended September 30, 2019. During the conference call to discuss the results, Green Dot’s CEO disclosed that there was a continuing decline of accounts in its active consumer business of approximately 620,000 which were mostly "one-time use accounts."
On this news, the Company’s stock price declined from $29.95 per share to a close of $24.54 per share in a single day of trading, a drop of approximately 18%.
If you purchased or otherwise acquired Green Dot securities between May 9, 2018 and November 7, 2019 and have questions about your legal rights, or possess information relevant to this matter, you are encouraged to contact attorney Mark Delaney at (617) 398-5600, by email at firstname.lastname@example.org, or by visiting http://shareholder.law/gdot
Block & Leviton LLP was recently ranked 4th among securities litigation firms by ISS for recoveries in 2017. The firm represents many of the nation's largest institutional investors and numerous individual investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for its clients.
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