Case Page

 

Case Status:    DISMISSED    
On or around 06/19/2013 (Court's order of dismissal)

Filing Date: July 27, 2012

According to the law firm press release, the Complaint charges Green Dot and certain of the Company’s executive officers with violations of federal securities laws. Green Dot provides widely distributed, low cost banking and payment solutions to a broad base of domestic consumers. Green Dot's products and services include General Purpose Reloadable (“GPR”) prepaid cards.

The Complaint alleges that throughout the Class Period the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Green Dot’s business, operations and prospects. Specifically, the Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company’s new internal risk policies and procedures were negatively impacting Green Dot’s growth in new account activations; (2) that certain of Green Dot’s retailers were planning to start selling competitive GPR products in addition to the Company’s products; (3) that the Company lacked historical data to accurately predict how other retailers’ sales of competitive GPR products would impact Green Dot’s sales; and (4) that, as a result of the foregoing, the defendants’ positive statements about Green Dot’s business, operations and prospects, as well as those regarding Green Dot’s revenue outlook for the 2012 fiscal year, lacked a reasonable basis.

On July 26, 2012, after the market closed, Green Dot disclosed that it was updating its previously issued outlook for the remainder of the year to reflect the impact of new competition and new internal risk policies and controls. Specifically, the Company announced that the revised outlook reflects “the impact of new internal risk policies and controls to improve the security and quality of [Green Dot’s] portfolio,” and that the “reforecast also assumes that by later this year, many of [the Company’s] retailers will start to sell competitive GPR products in addition to [Green Dot’s] products.” Moreover, the Company admitted that “[b]ecause we lack the historical data to accurately predict how [the new competition] will impact [Green Dot’s] sales, we have taken what we believe to be a conservative view of any potential impact.”

As a result of this news, the Company's shares declined $14.26 per share, or 61.15%, to close on July 27, 2012 at $9.06 per share, on unusually heavy volume.

On October 25, 2012, the Court issued an order of consolidation along with appointing lead plaintiff and lead counsel. On December 21, 2012, Consolidated Complaint was filed by the lead plaintiffs against the defendants.

On June 17, 2013, the Court stipulated that the class action be dismissed, with prejudice and without costs or attorneys’ fees under any federal or state law.

On June 19, 2013, the Court issued an order dismissing the case with prejudice and without costs or attorneys' fees under any federal or state law.

COMPANY INFORMATION:

Sector: Financial
Industry: Money Center Banks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: GDOT
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: C.D. California
DOCKET #: 12-CV-06492
JUDGE:
DATE FILED: 07/27/2012
CLASS PERIOD START: 01/26/2012
CLASS PERIOD END: 07/26/2012
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
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 12-CV-06492
JUDGE:
DATE FILED: 12/21/2012
CLASS PERIOD START: 01/26/2012
CLASS PERIOD END: 07/26/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
No Document Title Filing Date