SOURCE: Brower Piven, A Professional Corporation

October 28, 2009 15:56 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $250,000 From Investment in Advanta Corp. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the December 14, 2009 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - October 28, 2009) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of Class A and/or Class B common stock of Advanta Corp. ("Advanta" or the "Company") (NASDAQ: ADVNA) during the period between, October 31, 2006 and November 27, 2007, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than December 14, 2009 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/986-0036) to answer any questions you may have in that regard.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that Advanta's assets contained tens of millions of dollars worth of impaired credit card receivables for which the Company had not accrued losses because Advanta had been extremely aggressive in granting credit to customers without verifying the customers' ability to pay, to such a degree that by the summer of 2009, Advanta customers' default rate would be almost six times worse than industry average; that Advanta's manipulation of its cash rewards program caused creditworthy customers to cease doing business with the Company; that Advanta's credit receivables were unduly risky due to the Company's practice of issuing credit cards to small business owners without, in many instances, verifying income, while failing to properly account for Advanta's continuing delinquent customers and the credit trends in the Company's portfolio, all causing the Company to not be on track to be profitable in 2008. According to the complaint, after Advanta announced, on November 27, 2007, that due to the volatility of the economy, guidance for 2008 would not be released and that since the release of the third quarter 2007 results on October 25, 2007, a higher percentage of customers had become delinquent on their credit card payments and a lower percentage of customers had made payments, indicating a trend of charge-offs, the value of Advanta's stock declined significantly.

If you have suffered a net loss for all transactions in Advanta Class A and/or Class B stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-986-0036, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/986-0036
    Email Contact