Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of a class consisting of all purchasers of the securities of Green Dot Corporation (“Green Dot” or the “Company”) (NYSE:GDOT) between January 26, 2012 and July 26, 2012, inclusive (the “Class Period”).
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at email@example.com, or visit our website at http://www.glancylaw.com.
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.
Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions and substantial expertise in actions involving corporate fraud.
If you are a member of the class described above, you may move the Court, no later than 60 days from the date of this Notice, to serve as lead plaintiff; however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.