In re Green Dot Corporation Securities Litigation

I. Background

25 Defendant Green Dot Corporation (“Green Dot”) is a publicly- 26 traded “financial technology” and “bank holding company.” 27 Complaint ¶ 14. Green Dot’s products include re-loadable debit 28 cards, branded gift cards, and checking accounts. Id. ¶ 15. Beginning in May 2018, Defendants issued several press releases and other statements touting Green Dot’s revenue growth and increased user base. Id. ¶¶ 16-22. Beginning in February 2019, and again in May, August, and November, Green Dot and its officers issued further quarterly reports, press releases, and statements that, according to the Complaint, indicated that the prior representations about Green Dot’s 2018 successes were false and misleading. Id. ¶¶ 24, 26-27, 29-30, 32. In essence, the 2019 statements allegedly revealed that Green Dot’s 2018 growth was the product of a misguided strategy of pursuing less-profitable long-term customers over more profitable short-term customers, including an effort to convert the latter to the former, resulting in higher than expected declines in Green Dot’s revenue in 2019. Green Dot’s share price declined 15 …