An investigation was initiated on behalf of investors of NetSpend Holdings Inc (NASDAQ: NTSP) over possible breaches of fiduciary duty and other violations of the law by certain officers and directors at NetSpend Holdings.

The investigation by a law firm focuses on whether the directors and officers of NetSpend Holdings Inc harmed the company by breaching their fiduciary duties to shareholders by causing or permitting the company to engage in deceptive and unfair practices.


NetSpend Holdingss 12months Total Revenue more than doubled over the past four annual filing periods. Its Total Revenue rose from $128.60million in 2007 to $275.39million in 2010. Its Net Income increased over the same time frame from $14.73million in 2007, respectively a Net Loss of $11.64million in 2008 to a Net Income of $23.75million for 2010.

Shares of NetSpend Holdings Inc (Public, NASDAQ:NTSP) traded during November and December 2010 and February 2011 at almost $16, but fell in March 2011 to $9.22 per share.
On May 5, NetSpend Holdings Inc announced its financial results for the quarter ended March 31, 2011. It reaffirmed its Fiscal Year 2011 revenue guidance, but lowered its prior FY 2011 earnings guidance.

NTSP shares fell from almost $11 on May 2 to $8.64 per share on May 9.

On May 19, 2011, the Florida Attorney General announced an investigation of NetSpend for failing to disclose certain prepaid debit card fees to consumers. The announcement stated that in certain instances, every transaction a consumer makes using a prepaid debit card may be subject to a hidden fee.

NTSP stock fell from roughly $9.5 on May 19 to $7.87 on May 23, 2011.