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Advanta Corp. Investment Notes Investor Lawsuit

  • If you purchased Advanta RediReserve variable rate certificates and investment notes during the period beginning June 24, 2007 through November 8, 2009, you may have certain options. Please contact the Shareholders Foundation, Inc. 

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Advanta Corp.
Security

Case Name
Advanta Shareholder Class Action 07/23/2010
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Eastern District of Pennsylvania

Class Period Begin
Class Period End
Deadline To File for Lead
Settlement Notice
Advanta_Settlement_02_06_2014.pdf
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Settlement Overview

Date Settled
Date Settled
Settlement Amount
$3,550,000.00

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Summary

April 22, 2014 - The court preliminarily approved the settlement.

February 6, 2014 - A stipulation of settlement was filed by the parties.

July 16, 2012 - The court denied the defendants' motion to dismiss.

October 7, 2011 - A second amended complaint was filed.

September 9, 2011 - The court granted the defendants' motion to dismiss. The plaintiffs were given leave to amend the complaint.

January 13, 2011 - An amended complaint was filed.

July 23, 2010 - An investor in Advanta Corp. RediReserve Variable Rate Certificates filed a lawsuit on behalf of those purchasing Advanta RediReserve variable rate certificates and investment notes during the period beginning June 24, 2007 through November 8, 2009, against certain current and former officers and directors of the Advanta Corporation ( Advanta ) and KPMG LLP, Advanta's auditor.

According to the complaint the plaintiff alleges that between June 24, 2007 and November 8, 2009, Advanta Corp's registration statements in connection with the offering of Advanta RediReserve variable rate certificates and investment notes contained materially false statements of facts. The complaint alleges that the individual defendants in this action signed Advanta's materially false registration statements. The complaint further alleges that KPMG served as Advanta Corp's auditor between June 24, 2007 and November 8, 2009, and vouched for the false statements in AdvantaCorp.'s registration statements.

Chuck Jaffe, of MarketWatch said in April 2009 that Advanta Corp. Investment Notes and RediReserve Variable Rate Certificates were “the Stupid Investment of the Week”, because “Investors who flock to these high-yield notes may find that the current conditions are just wrong enough so that they will get burned”. Chuck Jaffe noted that “Advanta's investment notes are unsecured debt, without any reserve to pay them off and with no insurance protection from the Federal Deposit Insurance Corp” and “that the only way you get paid in full when the notes mature is if Advanta remains sufficiently profitable to get your money back.”

Date Settled