A Meta Financial investor filed a lawsuit on behalf of investors who purchased common stock of Meta Financial Group (CASH) between May 14, 2009 and October 12, 2010, against Meta Financial Group, Inc over alleged violations of Federal Securities Laws. Meanwhile an investigation on behalf of current long term investors in Meta Financial Group Inc. (NASDAQ:CASH) shares over possible breaches of fiduciary duty by certain directors and officers Meta Financial Group was announced.

The investigation by a law firm on behalf of current long term investors in stock of Meta Financial Group Inc. (NASDAQ:CASH) concerns whether certain current and/or former officers and members of Meta Financial Groups board of directors and executive officers can be held liable in connection with the alleged Securities Laws violations in the lawsuit by investors who purchased CASH stock between May 14, 2009 and October 12, 2010. According to the complaint filed in the United States District Court for the Northern District of Iowa the plaintiff alleges on behalf of purchasers of the common stock of Meta Financial Group Inc. between May 14, 2009 and October 12, 2010 that Meta Financial Group Inc and certain of its Officers issued between May 14, 2009 and October 12, 2010 a series of materially false and misleading statements related to Meta Financial Groups business and operations in violation of the Securities Exchange Act of 1934. Meta Financial Group Inc. had as of Sept. 30, 2009 $834.78million in Total Assets. While Meta Financial Group Inc. was able to report a 12month Net Income of $3.69million on Sept. 30, 2006, it had to report a Net Loss of $1.46million on Sept. 30, 2009. CASH shares reached over $40 per share in 2007 and were able to hold $40 per share in the beginning of 2008. CASH shares traded at as little as $7.44 in March 2009. Recently shares of Meta Financial Group Inc. (CASH) fell from $32.75 on Oct. 11, 2010 to under $20 on October 13, 2010. On October 12, 2010, Meta Financial Group Inc had announced in a filing with the U.S. Securities Exchange Commission ('SEC') that the Office of Thrift Supervision ('OTS') had advised Meta Financial Group Inc, as early as October 6, that it has determined that the Meta Financial Meta Financial Groups wholly owned subsidiary MetaBank 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.
Meta Financial Groups report further stated it is anticipated that the discontinuance of the iAdvance program and the potential discontinuance of the tax-related programs '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.'