Fifth Third investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Fifth Third operates as a diversified financial services company in the United States. Fifth Third is the indirect holding company of Fifth Third Bank, National Association (“Fifth Third Bank”). For years, Fifth Third Bank employed a “cross-sell” strategy which continued through at least 2016. Fifth Third Bank used this cross-sell strategy to increase the total number of products and services it provided to existing customers.
The Class Period commences on February 26, 2016. On February 25, 2016, during aftermarket hours, Fifth Third filed an Annual Report on a Form 10-K with the SEC, reporting its financial and operating results for the quarter and year ended December 31, 2015. With respect to Fifth Third’s cross-sell strategy, the Form 10-K represented that Fifth Third benefited from “cross-selling opportunities for [its] commercial products,” and that its various “business segments form synergies by taking advantage of cross-sell opportunities.”
The complaint alleges that, on March 2, 2020, Fifth Third filed an Annual Report on a Form 10-K with the SEC, reporting its financial and operating results for the quarter and year ended December 31, 2019 (the “2019 10-K”). According to the 2019 10-K, the U.S. Consumer Financial Protection Bureau (“CFPB”) “notified Fifth Third that it intends to file an enforcement action in relation to alleged unauthorized account openings.” As the market digested this information, Fifth Third’s stock price fell $0.72 per share, or 2.95%, over a few trading days to close at $23.68 per share on March 5, 2020.
However, the true scope of Fifth Third’s alleged wrongdoing and potential liability was left undisclosed in the 2019 10-K and was actively downplayed. For example, the defendants reassured investors that “Fifth Third believes that the facts do not warrant an enforcement proceeding and intends to defend itself vigorously if such an action should be filed.” As a result, Fifth Third’s stock price continued to trade at artificially inflated prices through March 6, 2020.
Finally, on March 9, 2020, the CFPB announced that it had filed a lawsuit against Fifth Third Bank, disclosing significant additional information concerning its investigation into Fifth Third that it had previously failed to disclose. On this news, Fifth Third’s stock price fell $0.64 per share, or approximately 3.5%, to close at $17.66 per share on March 11, 2020.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) as a result of Fifth Third Bank’s aggressive incentive policies to promote its cross-sell strategy, Fifth Third Bank employees engaged in unauthorized conduct with customer accounts; (ii) since at least 2008, Fifth Third Bank, and by extension, Fifth Third, was aware of such unauthorized conduct and, thus, that it was violating relevant regulations and laws aimed at protecting its consumers; (iii) Fifth Third failed to properly implement and monitor its cross-sell program, detect and stop misconduct, and identify and remediate harmed consumers; (iv) all the foregoing subjected Fifth Third to a foreseeable risk of heightened regulatory scrutiny or investigation; (v) Fifth Third’s revenues were in part the product of unlawful conduct and thus unsustainable; and (vi) as a result, Fifth Third’s public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than June 8, 2020 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
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Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
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