Active Network, a Global Payments Inc. (GPN) Subsidiary, Engaged in Deceptive Business Practices
A shareholder filed a class action on behalf of all purchasers of Global Payments Inc. (NYSE: GPN) securities between October 31, 2019 and October 18, 2022, for violations of the Securities Exchange Act of 1934. Global Payments is a leading payments technology company that delivers innovative software and services to merchants and financial institutions worldwide. Active Network, which provides third-party registration and payment processing services to consumers signing up to participate in events, is one of Global Payments’ wholly owned subsidiaries.
According to the complaint, defendants failed to disclose that: (a) Active Network used deceptive and abusive acts and practices to dupe its customers into enrolling into Active Network’s own discount club; (b) since July 2011, Active Network, and by extension, Global Payments, was aware of such unauthorized conduct and that it was violating relevant regulations and laws aimed at protecting its consumers; and (c) since 2011, Global Payments failed to properly monitor its subsidiary from engaging in such unlawful conduct, detect and stop the misconduct, and identify and remediate harmed consumers. The foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny or investigation.
On October 18, 2022, the truth about Global Payments’ practices was disclosed when the Consumer Financial Protection Bureau (“CFPB”) issued a complaint against Active Network for illegally cramming consumers with membership fees. On this news, the price of Global Payments’ stock fell $1.33 to close at $113.67 on October 18, 2022.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Global Payments. Shareholders who want to act as lead plaintiff for the class must file their papers by April 7, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.