The Shuman Law Firm today announced that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Iowa on behalf of purchasers of Meta Financial Group, Inc. ("Meta" or the "Company") (NASDAQ:CASH) during the period of May 14, 2009 through October 12, 2010, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights and interests with respect to this matter, please contact Kip B. Shuman or Rusty E. Glenn toll free at (866) 974-8626 or email Mr. Shuman at firstname.lastname@example.org or Mr. Glenn at email@example.com.
The Complaint alleges that Meta and certain of its senior officers made materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934. In particular, the Complaint alleges that on October 12, 2010, Meta 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, 2010 -- that OTS had determined that Meta 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."
The Company's report further disclosed that it anticipated that the discontinuance of the iAdvance program and the potential discontinuance of tax-related programs would "eliminate a substantial portion of [the Company's] gross profit." Finally, the Company stated that the discontinuance of the iAdvance program may result in elevated rates of nonpayment on outstanding iAdvance loans. Following the publication of this report, Meta shares fell over from an October 12, 2010 close of $33.23 per share to close on October 13, 2010 at $22.25 per share -- losing approximately one third of their value overnight. Meta shares have continued to fall and currently trade around $14 per share.