BOCA RATON, FL -- (Marketwire) -- 08/10/12 -- Saxena White P.A. has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of all investors who purchased Green Dot Corporation ("Green Dot" or the "Company") (NYSE: GDOT) common stock during the period from January 26, 2012 through July 26, 2012 (the "Class Period"). The complaint brings forth claims for violations of the Securities Exchange Act of 1934.
Green Dot offers prepaid financial services and money management solutions to a broad base of U.S. consumers. The Company offers general purpose reloadable prepaid debit cards throughout a network of retail stores throughout the country. 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 per share to $9.06 per share on July 27, 2012 -- a one-day stock price drop of over 61% on unusually high trading volume.
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.
You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased Green Dot stock between January 26, 2012 and July 26, 2012, inclusive, you may contact Joe White or Marc Grobler at Saxena White P.A. to discuss your rights and interests.
If you purchased Green Dot common stock during the Class Period and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than September 25, 2012. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., located in Boca Raton, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.