Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Comerica Incorporated (CMA) Investors and Encourages Investors to Contact the Firm Before October 20, 2023
Investors have until October 20, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Comerica Incorporated (“Comerica” or the “Company”) (NYSE: CMA) securities during the period from February 9, 2021 through May 29, 2023, inclusive (the “Class Period”). Investors have until October 20, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On May 29, 2023, after trading hours, American Banker released an article entitled “Comerica in ‘serious violation’ of Treasury’s Direct Express program.” The article discussed significant issues with i2c Inc. and Conduent Inc., two vendors to whom Comerica contracts out the day-to-day operations of Direct Express, a federal government program which deposits “roughly $3 billion a month electronically on prepaid cards to millions federal government beneficiaries who do not have a bank account.” On this news, the price of Comerica shares declined by $1.40 per share, or approximately 3.59%, from $38.99 per share to close at $37.59 on May 30, 2023. The next day, the price of Comerica shares declined another $1.49 per share, or approximately 3.96%, to close at $36.10 on May 31, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Comerica failed to provide meaningful oversight over the vendors to whom it contracted out day-to-day operations of the Direct Express program, a system through which it is contracted to provide federal benefits to millions of Americans without bank accounts; (ii) as a result of violations in the day-to-day operations of Direct Express, including handling fraud disputes and allowing sensitive data to be handled out of a vendor’s office in Pakistan, Comerica was not in compliance with the Federal Contract, and knew it was not in compliance; and (iii) Comerica knew and failed to disclose that it was in potential violation of Regulation E due to inadequate fraud prevention in the Direct Express program and responses to instances of fraud.
If you purchased or otherwise acquired Comerica securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
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