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Case Status:    SETTLED
On or around 02/10/2014 (Ongoing date of last review)

Filing Date: July 23, 2010

The complaint was originally filed on June 24, 2010, in the Court of Common Pleas of Montgomery County, Pennsylvania. It was removed to the U.S. District Court for the Eastern District of Pennsylvania on July 23, 2010.

According to the original Complaint, this is a securities class action brought on behalf of persons who, during the Class Period, purchased Advanta Corporation's (together with its subsidiaries, "Advanta" or the "Company") RediReserve variable rate certificates and investment notes (referred to collectively as "RediReserve notes") traceable to a registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") on August 18, 2006 (the "Registration Statement") as amended on February 28, 2007 (the "2007 Amendment"), February 28, 2008 (the "2008 Amendment"), February 9, 2009 (the "February 2009 Amendment"), and March 13, 2009 (the March 2009 Amendment") (collectively, the "Amendments").

The Registration Statement was filed with the SEC so that Advanta could commence a shelf registration and sale of RediReserve notes. Pursuant to the Registration Statement and the Amendments thereto, Advanta offered $500 million worth of RediReserve notes.

The Registration Statement, as amended, contained materially misleading statements and omissions that violated the Securities Act of 1933 (the "1933 Act"). This class action involves solely strict liability and negligence claims under the 1933 Act. Plaintiff expressly excludes and disclaims any allegation that could be construed as alleging fraud or intentional or reckless misconduct. Advanta, which is not a defendant in this case, is a financial holding company that, along with its subsidiaries, offers credit cards to small businesses. Advanta filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code on November 8, 2009.

On December 13, 2010, an Order was issued by the Court appointing Co-Lead Plaintiff and granting their selection of Co-Lead Counsel.

On January 13, 2011, an Amended Class Action Complaint For Violation Of The Securities Act Of 1933 was filed with the court.

On September 9, 2011, the Court issued an Order granting the Defendant's Motion to Dismiss in part and granting Plaintiff leave to amend.

On October 7, 2011, Plaintiffs filed their Second Amended Class Action Complaint.

According to an order issued by the Court on the 16th day of July 2012, the Advanta Defendants’ and KPMG’s Motion to Dismiss were denied. On September 18, 2012, the Court issued an Order denying KPMG's Motion to Reconsider the above order.

On February 6, 2014, the parties filed a Stipulation of Settlement.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol:
Company Market: Privately Traded
Market Status: Privately Held

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 #: 10-CV-03621
JUDGE: Hon. Cynthia M. Rufe
DATE FILED: 07/23/2010
CLASS PERIOD START: 06/24/2007
CLASS PERIOD END: 11/08/2009
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Scott & Scott LLP (New York-Current)
    500 Fifth Avenue, 40th Floor, Scott & Scott LLP (New York-Current), NY 10110
    212.223.6444 212.223.6334 ·
  2. Scott & Scott LLP (Ohio)
    12434 Cedar Road, Suite 12, Scott & Scott LLP (Ohio), OH 44106
    216.229.6088 216.229.6088 · scottlaw@scott-scott.com
  3. Scott & Scott LLP (San Diego)
    600 B Street, Suite 1500, Scott & Scott LLP (San Diego), CA 92101
    619.233.4565 619.233.4565 · scottlaw@scott-scott.com
  4. The Weiser Law Firm, P.C.
    121 N. Wayne, Ave, Suite 100, The Weiser Law Firm, P.C.
    610.667.7706 · rw@weiserlawfirm.com
No Document Title Filing Date
COURT: E.D. Pennsylvania
DOCKET #: 10-CV-03621
JUDGE: Hon. Cynthia M. Rufe
DATE FILED: 10/07/2011
CLASS PERIOD START: 02/28/2008
CLASS PERIOD END: 11/08/2009
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Scott & Scott LLP (New York-Current)
    500 Fifth Avenue, 40th Floor, Scott & Scott LLP (New York-Current), NY 10110
    212.223.6444 212.223.6334 ·
  2. The Weiser Law Firm, P.C.
    121 N. Wayne, Ave, Suite 100, The Weiser Law Firm, P.C.
    610.667.7706 · rw@weiserlawfirm.com
No Document Title Filing Date