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. Preliminary approval was granted April 22. Final approval was granted September 8.