Case Page

 

Case Status:    DISMISSED    
On or around 09/27/2011 (Court's order of dismissal)

Filing Date: February 20, 2009

According to a press release dated February 20, 2009, the Complaint charges American Express and certain of the Company's executive officers with violations of federal securities laws. American Express is currently the world's largest issuer of charge cards and credit cards as measured by purchase volume. engages in the communications business in North America and Europe. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning the Company's business, operations, and prospects were materially false and misleading. Specifically, the Complaint alleges that defendants' public statements, among other things, misled investors by falsely representing American Express's exposure to the riskiest credit card holders and failed to disclose the Company's increasing reliance on riskier credit card programs.

On November 10, 2008, the Company won Federal Reserve System approval to convert to a bank holding company, making it eligible for government help under the Troubled Assets Relief Program ("TARP"). The new American Express bank could qualify for up to $3.5 billion of the Treasury Department's money-a capital infusion required to save the Company from its riskier endeavors. As a result of the Company's shift to risky card issuances, American Express stock has plunged approximately 65% since March 2007.

On April 22, 2009, the first filed complaint was voluntarily dismissed by the plaintiffs against the defendants without prejudice. The case is continuing in Local No. 30 International Brotherhood of Electrical Workers Pension Fund, et al. v. American Express Company, et al., case number 09-CV-03016.

On August 14, 2009, Judge William H. Pauley, III, granted the motion to appoint Local No. 38 International Brotherhood of Electrical Workers Pension Fund as lead plaintiff, and approved Scott + Scott LLP as lead counsel. On October 13, 2009, the plaintiffs filed a Consolidated Class Action Complaint. The defendants responded by filing a motion to dismiss the Consolidated Class Action Complaint on November 20, 2009.

According to an article dated July 20, 2010, U.S. District Judge William Pauley in New York yesterday granted American Express’s request to throw out the 2009 suit. The investors failed to establish that defendants including Chief Executive Officer Kenneth I. Chenault and Chief Financial Officer Daniel T. Henry knew of any fraud or acted with reckless disregard, Pauley wrote. “The complaint’s allegations, taken collectively, reveal a company attempting to increase its share of the credit card market during significant financial turmoil,” the judge said, calling the case “a classic example of fraud by hindsight.”

On August 17, 2010, the plaintiff filed a Notice of Appeal from the Judgment and Memorandum and Order dismissing the case. On September 27, 2011, the Court entered the Mandate from the Second Circuit Court of Appeals affirming the judgment of the District Court.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: AXP
Company Market: New York SE
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: S.D. New York
DOCKET #: 09-CV-01596
JUDGE: Hon. William H. Pauley, III
DATE FILED: 02/20/2009
CLASS PERIOD START: 03/01/2007
CLASS PERIOD END: 11/12/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Glancy Binkow & Goldberg LLP (NY)
    1430 Broadway, Suite 1603, Glancy Binkow & Goldberg LLP (NY), NY 10018
    212.382.2221 212.382.2221 · info@glancylaw.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 09-CV-03016
JUDGE: Hon. William H. Pauley, III
DATE FILED: 10/13/2009
CLASS PERIOD START: 01/22/2007
CLASS PERIOD END: 11/12/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Scott & Scott LLP (New York-former)
    29th West 57th Street, 14th Floor, Scott & Scott LLP (New York-former), NY 10019
    212.223.6444 212.223.6334 · scottlaw@scott-scott.com
No Document Title Filing Date
No Document Title Filing Date