A law office recently noted that a financial institution came to a pending securities class action settlement agreement with its shareholders.
Robbins Geller Rudman and Dowd, LLP, noted that the settlement action was proposed for Advanta Corp., and affects all shareholders who acquired Class A or Class B stock during the class period between Oct. 16, 2006 and Jan. 30, 2008.
For those who are interested in attending the hearing, it will occur on Aug. 4, 2014, in the U.S. District Court for the Eastern District of Pennsylvania. Judge Cynthia Rufe will be overseeing the hearing, and will determine if the settlement of $13.25 million is fair to all parties, as well as if the payments to lead plaintiffs, attorneys and other parties is adequate.
Shareholders of the aforementioned stock types may have their rights affected by the decision, and it is important that these individuals take the appropriate action. The claims administrator can be reached to request the notice of proposed settlement of class action, as well as the proof of claim and release form. The latter should be entered by Aug.18, 2014, if a person wants to take part in the monetary return.
Those shareholders who are interested in being excluded from the settlement need to file a request with the claims administrator by July 3, 2014. For any individuals who want to object to any aspect of the settlement, it is necessary to send a letter to the court by the same date.
Lawsuit filed in 2009
The initial securities class action lawsuit was filed in 2009 by Izard Nobel, LLP, in the aforementioned court. This was for the class period between Oct. 31, 2006 and Nov. 27, 2007. The lawsuit specified that all shareholders who were involved in this lawsuit had to own either Class A or Class B interests.
The allegations against Advanta included the company potentially making statements that were false or misleading about business practices. Specifically, the company may not have properly informed shareholders of the struggles of its credit situation due to the greater economic market. It also did not note all of its losses for a series of delinquencies from customers and other impaired loans, which made its financial results inaccurate.
Due to these issues, the company’s stock rose significantly, inflating to $34.07 per share in mid-June 2007.