The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors that purchased Green Dot Corporation ("Green Dot" or the "Company") (NYSE: GDOT) securities between May 9, 2018 and November 7, 2019, inclusive (the "Class Period"). Green Dot investors have until February 17, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On February 20, 2019, Green Dot CEO Steven W. Streit revealed during the FY 2018 conference call that the Company’s strategy of attracting "high-value" long-term customers at the expense of "one and done" customers was self-sabotaging, stating, "…that we are somewhat a victim of our own success in converting more and more of our quarterly active accounts to direct deposit active accounts." These "one and done" customers represented a significant source of revenue in the Company’s legacy segment.
On this news, Green Dot’s share price fell $7.47 per share, or nearly 10%, to close at $67.20 per share on February 21, 2019, thereby injuring investors.
Then, on May 8, 2019, the Company disclosed a large "investment in growth for the purpose of aggressively marketing new products."
On this news, Green Dot’s share price fell $16.71 per share, or nearly 26%, to close at $46.56 per share on May 9, 2019, thereby injuring investors further.
Then, on August 7, 2019, Green Dot reported an "accelerated loss of unit sales in [its] prepaid product lines, resulting in lower active accounts from both non-reloading customers and cash reloading customers."
On this news, Green Dot’s share price fell $19.84 per share, or nearly 41%, to close at $27.42 per share on August 8, 2019, thereby injuring investors further.
Finally, on November 7, 2019, the Company revealed a decline of 620,000 accounts in its active consumer business, mostly "one-time use accounts."
On this news, Green Dot’s share price fell $5.41 per share, or nearly 18%, to close at $24.54 per share on November 8, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Green Dot’s strategy to attract "high-value" long-term customers was at the expense of "one and done" customers; (2) that Green Dot’s "one and done" customers represented a significant source of revenues in its legacy segment; (3) that, consequently, Green Dot’s strategy was self-sabotaging; and (4) that, as a result of the foregoing, Defendants’ statements about its business and operations were materially false and misleading at all relevant times.
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If you purchased Green Dot securities during the Class Period, you may move the Court no later than February 17, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Green Dot securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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