HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Green Dot (GDOT) Investors with $50K Plus Losses to Contact Its Attorneys Now, Firm Investigating Possible Securities Fraud
Class-action law firm urges GDOT investors who have suffered losses of 50K+ to submit your loss now to learn if they qualify to recover their investment losses.
SAN FRANCISCO, CA / ACCESSWIRE / November 8, 2019 / Hagens Berman reminds investors in Green Dot Corporation (NYSE:GDOT) of the firm's investigation of possible violations of the federal securities laws and urges GDOT investors who have suffered losses in excess of $50,000 to contact the firm.
Green Dot (GDOT) Investigation:
The investigation centers on the accuracy of Green Dot's statements about the demand for its legacy prepaid credit line and if the Company inflated the number of its active users.
On May 8, 2019, the Company disappointed investors when it slashed guidance and announced an expensive marketing initiative to attract new users. Its executives explained it was "experiencing some erosion in the number of legacy product line." This news caused a massive 26% drop in Green Dot's share price.
Then, on August 7, 2019, Green Dot announced another guidance reduction due to a steep decline in its legacy prepaid card product line and the decline of 500,000 active prepaid accounts. This news caused Green Dot's shares to plummet another 45%.
After the market closed, on November 7, 2019, Green Dot reported Q3 2019 earnings and guided to the low end of the FY 2019 revenue range that management provided in Q2 2019.
In addition, BTIG analyst Mark Palmer said in a note "we were surprised by the extent of the expected year-over-year decline in adjusted EBITDA implied by management's initial thoughts on its FY20 operating performance." This news caused Green Dot's shares to plummet almost 23% during intraday trading on November 8, 2019.
Whistleblowers: Persons with non-public information regarding Green Dot should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email [email protected].
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SOURCE: Hagens Berman Sobol Shapiro LLP
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