Glancy Prongay & Murray Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Green Dot Corporation

LOS ANGELES, Jan. 28, 2020 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming February 17, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of Green Dot Corporation  (“Green Dot” or the “Company”) (NYSE: GDOT) investors who purchased securities between May 9, 2018 and November 7, 2019, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to [email protected], or visit our website at www.glancylaw.com.

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 request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com.  If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
[email protected]
www.glancylaw.com