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Higher One Holdings under investigation

A law office recently began looking into the leaders of a holding company after shareholders alleged that the company may have been in violation of federal securities laws. There is a possibility that this will develop into a securities class action lawsuit in the future.

Law firm Bronstein, Gewirtz and Grossman, LLC, noted that it started investigating the leaders at Higher One Holdings, Inc., as they may have violated federal law. The company's shares declined 14 percent on May 13, 2014, after it noted that it received penalties from the Federal Reserve. These issues revolved around potential violations of the Federal Trade Commission Act. There may have been issues with Higher One Holdings' disclosure and marketing practives for its OneAccount fund. Depending on the outcome, the company noted that it may have to default on its credit facility due to these penalties.

After this information surfaced, the company had its shares drop another 24.85 percent – or $1.26 – to $3.81 per share on May 15, 2014.

It is possible for shareholders to discuss these matters with the law office to learn more about how the process may affect them. Those who have information that could help out the investigation are also welcome to come forward. The best people to contact are Peretz Bronstein and Eitan Kimelman, and they can be reached by telephone or email. Shareholders who make contact through email need to give the law office their telephone number and email address.

Second investigation begins
Another law office explained that it would be investigating the executives at Higher One Holdings for many of the same reasons. This also could become a class action lawsuit down the line.

Pomerantz, LLP, explained that the federal laws that may have been violated by the company were Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Higher One Holdings' leaders filed a Form 10-Q with the Securities and Exchange Commission on May 12, 2014. These penalties may produce significantly adverse results to the company's financial situation, especially regarding its credit facility.

For those who are looking for more information on the matter, there is also an option to speak with this law office. The best person to reach is Robert Willoughby, and he can be contacted by shareholders through email or telephone.

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