SAN FRANCISCO, Aug. 12, 2019 (GLOBE NEWSWIRE) — Hagens Berman Sobol Shapiro LLP alerts investors in Green Dot Corporation (NYSE: GDOT) to the Firm’s investigation of possible violations of the Federal securities laws.
If you invested in Green Dot before August 8, 2019 and suffered losses or have information that may assist the firm’s investigation contact Hagens Berman:
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing
The investigation centers on the accuracy of Green Dot’s statements about the demand for its banking-as-a-service (Baas) platform and the sustainability of its business model.
On May 9, 2019, the Company disappointed investors when it slashed earnings guidance announced it would be dramatically increasing spending on technology and marketing to attract new users. This news caused a massive 26% drop in Green Dot’s share price.
Then, on August 8, 2019, GreenDot announced another guidance reduction due to a steep decline in legacy prepaid card product line and the Company’s delay in launching its newest BaaS product. This news caused Green Dot’s shares to plummet another 45%.
All told, the two drops have wiped out over $1.9 billion in market capitalization with Green Dot’s shares trading at less than one-third of its 52-week high.
“We’re focused on investors’ losses and whether Green Dot misled investors about its growth prospects,” said Hagens Berman partner Reed Kathrein.
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 GDOT@hbsslaw.com.
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Reed Kathrein, 510-725-3000