An investigation on behalf of investors of Green Dot Corporation (NYSE: GDOT) shares over potential securities laws violations by Green Dot Corporation and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Green Dot Corporation (NYSE: GDOT) concerning whether a series of statements by Green Dot Corporation regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Pasadena, CA based Green Dot Corporation operates as a financial technology and bank holding company in the United States. Green Dot Corporation reported that its annual Total Revenue rose from $890.15 million in 2017 to over $1.04 billion in 2018 and that its Net Income increased from $85.88 million in 2017 to $118.7 million in 2018.
On May 8, 2019, Green Dot Corporation released its financial results for the first quarter of 2019, announcing dramatically reduced earnings guidance. During a conference call, the Company disclosed that it was experiencing some erosion in the number of legacy product line, non-direct deposit active accounts, primarily from our legacy brick and mortar retail channel and to a lesser degree from our RushCard and account now digital direct brands. On this news, Green Dots share price dropped over 26%.
Then, on August 7, 2019, Green Dot Corporation released financial results for the second quarter of 2019, announcing another guidance reduction and disclosing lower than anticipated prepaid unit sales that has caused a material reduction in active prepaid accounts.

Shares of Green Dot Corporation (NYSE: GDOT) declined from $91.51 per share in September 2018 to as low as $29.47 per share on August 23, 2019.