Bronstein, Gewirtz & Grossman, LLC Announces Class Action Lawsuit Against Advanta Corp.
October 20 2009 - 4:39PM
Marketwired
Bronstein, Gewirtz & Grossman, LLC announces that a class
action has been filed in the United States District Court for the
Eastern District of Pennsylvania on behalf of those who purchased
or otherwise acquired stock of Advanta Corp. ("Advanta" or the
"Company") (NASDAQ: ADVNA), during the period between October 31,
2006 through and including November 27, 2007 (the "Class Period").
The Complaint charges the defendant with violations of the
Securities and Exchange Act of 1934. The complaint alleges that
during the Class Period, defendants issued materially false and
misleading statements regarding the Company's financials. The
Complaint alleges that defendants engaged in improper behavior that
harmed Advanta's investors by failing to disclose the impact of the
economic environment and the deteriorating credit trends on its
business and that the Company failed to adequately and timely
record losses for its impaired loans. Advanta also failed to
properly account for their continuing delinquent customers, causing
its financial results to be materially false.
Then on November 27, 2007, Advanta held a conference call with
analysts and investors announcing that guidance for 2008 would not
be released due to volatility of the economy. Additionally, since
the release of the third quarter 2007 results on October 25, 2007,
a higher percentage of customers had become delinquent on their
credit card payments and a lower percentage of customers made
payments, indicating a trend of charge-offs. As a result of these
announcements, Advanta's stock dropped to close at $11.06 per share
on November 27, 2007, down 72% that the 34.07 high in June
2007.
No Class has yet been certified in the above action. If you wish
to review a copy of the Complaint, to discuss this action, or have
any questions, please contact either Peretz Bronstein or Eitan
Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484
or via email eitan@bgandg.com. Those who inquire by e-mail are
encouraged to include their mailing address and telephone number.
December 13, 2009 is the deadline for investors to seek a lead
plaintiff appointment.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation
boutique. Our primary expertise is the aggressive pursuit of
litigation claims on behalf of our clients. In addition to
representing institutions and other investor plaintiffs in class
action security litigation, the firm's expertise includes general
corporate work, private securities offerings, and securities
arbitration.
Peretz Bronstein Eitan Kimelman Bronstein, Gewirtz &
Grossman, LLC 212-697-6484 Email Contact
Advanta Corp Class A (MM) (NASDAQ:ADVNA)
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