The Briscoe Law Firm, PLLC, founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the law firm of Cash Powers Taylor, LLP are investigating potential legal claims available to purchasers of Advanta Corp.’s “RediReserve Investment Notes and Variable Rate Certificates.” Advanta Corp. (OTC: ADVBQ; ADVNQ) issued and sold $500 million worth of “RediReserve Investment Notes and Variable Rate Certificates” to the investing public between March 12, 2009 and November 8, 2009, with potential knowledge that their profit margins were insufficient to repay the full value of these unsecured debts.
The investigation concerns Advanta Corp. and certain officers and directors who may have violated the Securities Exchange Act of 1934 by issuing between October 31, 2006 and November 27, 2007 materially false and misleading statements regarding its business and financial results. Specifically, Advanta failed to disclose (a) that Advanta's assets contained tens of millions of dollars worth of impaired credit card receivables for which the Company had not accrued losses; (b) prior to and during the class period, Advanta had been extremely aggressive in granting credit to customers without verifying the customers' ability to pay, to such a degree that by the summer of 2009, Advanta customers' default rate would be almost six times worse than industry average; (c) Advanta's manipulation of its cash rewards program angered customers and caused the Company to lose good, creditworthy customers; (d) Advanta's credit receivables were unduly risky due to the Company's practice of issuing credit cards to small business owners without, in many instances, verifying income; (e) defendants failed to properly account for Advanta's continuing delinquent customers and the credit trends in the Company's portfolio, resulting ultimately in large charges to reflect impairments; and (f) the Company was not on track to be profitable in 2008. As a result of defendants’ false statements, Advanta’s stock traded at artificially inflated prices during the Class Period, reaching a high of $34.07 per share on June 19, 2007, so the lawsuit.
If you currently own or purchased Advanta Corp.’s “RediReserve Variable Rate Certificates” and would like additional information regarding this investigation or if you have information regarding the allegations against the company, please contact Patrick Powers at Cash Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org, or The Briscoe Law Firm at (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
The Briscoe Law Firm is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience managing client legal issues in complex litigation and transactional matters and has extensive experience managing governmental relations and strategic communications advocacy efforts in a variety of areas including telecommunications, energy, transportation, renewable energy incentives and municipal governments.
Cash Powers Taylor, LLP is a boutique litigation and corporate transactional law firm that handles a variety of complex commercial and business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, high-profile business disputes, and shareholder derivative suits and security class actions.