Case Page

 

Case Status:    DISMISSED    
On or around 09/11/2000 (Other)

Filing Date: June 30, 1997

According to the firm's 10-Q filing for the quarterly period ended June 30, 1999, on June 30, 1997, purported shareholders of the Company who are represented by a
group of law firms filed a putative class action complaint against the Company
and several of its current and former officers and directors in the United
States District Court for the Eastern District of Pennsylvania. A second,
similar complaint was filed in the same court a few days later by a different
group of law firms. Both complaints allege that the Company made
misrepresentations in certain of its public filings and statements in violation
of the Securities Exchange Act of 1934. The complaints seek damages of an
unspecified amount. On July 10, 1998, the complaints, which had previously been
consolidated, were dismissed by the Court for failing to state a claim. The
plaintiffs determined not to attempt to amend their complaints. Rather, they
appealed the District Court's decision to the United States Courts of Appeals
for the Third Circuit, which court, on June 17, 1999, affirmed the District
Court.

The Complaint charges Advanta and certain of its officers with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934. According to the Complaint, during the Class Period, defendants disseminated numerous announcements concerning the Company's earnings, return on equity, and growth which failed to disclose the fact that the performance of its credit card operations had reversed course. Specifically, Defendants are alleged to have employed a change in accounting methodology to mask and forestall recognition of this trend reversal. The Complaint further alleges that while these problems were concealed from the investing public, during the class period certain officers and directors sold over 890,000 shares of Advanta common stock for proceeds of over $39 million. Plaintiffs claim that upon disclosure of the true condition of the Company's business, the price of Advanta common stock declined over 20% to $31.875 per share, causing substantial losses for Advanta investors during the Class Period. As a result, the price of Advanta common stock traded at artificially inflated prices during the Class Period.

COMPANY INFORMATION:

Sector: Financial
Industry: Consumer Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ADVNA
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: E.D. Pennsylvania
DOCKET #: 97-CV-04343
JUDGE: Hon. Ronald L. Buckwalter
DATE FILED: 06/30/1997
CLASS PERIOD START: 08/13/1996
CLASS PERIOD END: 03/17/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernard M. Gross
    1500 Walnut Street, Suite 600, Bernard M. Gross, PA 19102
    215.561.3600 215.561.3000 · bmgross@BernardMGross.com
  2. Donovan Miller, L.L.C.
    1608 Walnut Street, Suite 1400, Donovan Miller, L.L.C., PA 19103
    212732.6020 · dmlaw@erols.com
  3. Pasternak, Feldman & Plutnick, P.A.
    Eisenhower Plaza South, Suite 245, 70 South Orange Avenue, Pasternak, Feldman & Plutnick, P.A., NJ 07039
    201.994.0330 ·
  4. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
COURT: E.D. Pennsylvania
DOCKET #: 97-CV-04343
JUDGE: Hon. Ronald L. Buckwalter
DATE FILED: 12/17/1997
CLASS PERIOD START: 08/13/1996
CLASS PERIOD END: 03/17/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernard M. Gross
    1500 Walnut Street, Suite 600, Bernard M. Gross, PA 19102
    215.561.3600 215.561.3000 · bmgross@BernardMGross.com
  2. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.com
No Document Title Filing Date