WEST HARTFORD, CT -- (Marketwire) -- 07/31/12 -- The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of purchasers of the securities of Green Dot Corporation ("Green Dot" or the "Company") (NYSE: GDOT) between January 26, 2012 and July 26, 2012 (the "Class Period").
The Complaint alleges that Green Dot and certain of its officers and directors violated the federal securities laws. Specifically, the Complaint alleges that defendants made false statements and failed to disclose the following material adverse facts: (i) that the Company's new internal risk policies and procedures were negatively impacting Green Dot's growth in new account activations; (ii) that certain of Green Dot's retailers were planning to start selling competitive General Purpose Reloadable ("GPR") prepaid cards in addition to the Company's products; (iii) that the Company lacked historical data to accurately predict how other retailers' sales of competitive GPR products would impact Green Dot; and (iv) the defendants' positive statements about Green Dot's business and revenue outlook for 2012 lacked a reasonable basis.
On July 26, 2012, 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. On this news, the Company's shares declined $14.26 to $9.06 per share on July 27, 2012.
If you are a member of the class, you may, no later than September 25, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/greendot/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firstname.lastname@example.org. For more information about class action cases in general, please visit our website: www.izardnobel.com.