Did Green Dot Corporation (GDOT) Mislead Shareholders?
Green Dot regularly touted the success of its business strategies until the Company revealed in its first fiscal quarter 2019 conference call that it was experiencing a decline in its legacy product line and non-direct deposit accounts. On June 30, 2019, Green Dot revealed that its account services segment “underperformed expectations… in the first half in general due to a decline in non[-]direct deposit active accounts…resulting in lower than anticipated prepaid unit sales.” The stock declined significantly as a result and has yet to recover.