Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Meta Financial Group, Inc. ("Meta Financial" or the "Company") (NASDAQ: CASH). Meta Financial operates as the holding company for MetaBank and Meta Trust Company that provides various banking and financial services. Meta Financial was founded in 1954 and is headquartered in Storm Lake, Iowa.
Robbins Umeda LLP's investigation concerns whether the Company engaged in unfair or deceptive acts or practices in violation of the Federal Trade Commission Act ("FTCA") and the Office of Thrift Supervision ("OTS") Advertising Regulation in connection with the Company's operation of its iAdvance program.
On October 6, 2010, the OTS advised the Company that it had determined that Meta Financial engaged in unfair or deceptive acts or practices in violation of section 5 of the FTCA and the OTS Advertising Regulation in connection with Meta Financial's operation of the iAdvance program. As a result, the OTS required Meta Financial to discontinue all iAdvance line of credit origination activity by October 13, 2010. The Company stated on October 12, 2010, that it anticipates 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. In addition, the discontinuance of the iAdvance program may result in elevated rates of nonpayment on outstanding iAdvance loans."
Following this announcement, over the next few days, the Company's stock fell over $18.00 per share, to close at $14.71 per share on October 18, 2010, a decline of over 44%.If you are a shareholder of Meta Financial, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org. Robbins Umeda LLP is a securities litigation firm, which has significant experience representing investors in shareholder derivative actions, securities fraud class actions, and merger-related shareholder class actions. For more information about the firm, please go to http://www.robbinsumeda.com. Advertisement