Former Attorney General of Louisiana, Charles C. Foti, Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) announce the commencement of an investigation into Meta Financial Group, Inc. ("Meta Financial" or the "Company") (Nasdaq: CASH) to determine whether it has violated federal securities laws by issuing false and misleading statements to its shareholders.
On October 12, 2010, Meta Financial filed a report with the Securities Exchange Commission (the “SEC”) announcing that the Office of Thrift Supervision (“OTS”) had advised the Company, as early as October 6, that it has determined that the Meta Financial had engaged in “unfair or deceptive acts or practices in violation of Section 5 of the Federal Trade Commission Act and the OTS Advertising Regulation in connection with the Bank's operation of the iAdvance program, and required the Bank to discontinue all iAdvance line of credit origination activity by October 13, 2010.
Following the publication of this report, the next trading day, shares of the Company dropped precipitously -- falling over $13.00 per share, to below $20,00 per share -- a decline of over 40%.
The Company’s report further stated it is anticipated that the discontinuance of the iAdvance program and the potential discontinuance of the tax-related programs (which are subject to OTS approval) “will eliminate a substantial portion of [the Company’s] gross profit (net revenue less direct expenses). In addition, the discontinuance of the iAdvance program may result in elevated rates of nonpayment on outstanding iAdvance loans.”If you have information that would assist KSF in its investigation, or would like to discuss your legal rights, you may, without obligation or cost to you, e-mail KSF Director of Client Relations, Neil Rothstein, Esq. ( firstname.lastname@example.org), toll free at 877-694-9510, or after hours via cell phone 330-860-4092 or call KSF Managing Partner, Lewis Kahn ( email@example.com), toll free 1-866-467-1400, ext. 200, after hours via cell phone 504-301-7900. KSF attorneys have significant experience in representing both institutional and individual shareholders in securities fraud litigation nationwide. KSF encourages both institutional and individual purchasers of Meta Financial to contact the firm to discuss the investigation. For more information on KSF, please visit www.ksfcounsel.com.