SOURCE: Bernstein Liebhard LLP

October 25, 2010 14:21 ET

Bernstein Liebhard LLP Announces Action Filed on Behalf of Investors in Meta Financial Group, Inc.

NEW YORK, NY--(Marketwire - October 25, 2010) -  Bernstein Liebhard LLP today announced that an action has been filed in the United States District Court for the Northern District of Iowa on behalf of purchasers (the "Class") of Meta Financial Group, Inc. ("Meta" or the "Company") (NASDAQ: CASH) common stock during the period of May 14, 2009 through October 12, 2010, inclusive (the "Class Period"). 

Plaintiffs allege Meta and certain of its officers made materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934. In particular, Plaintiffs allege that on October 12, 2010, Meta filed a report with the Securities Exchange Commission (the "SEC") announcing that the Office of Thrift Supervision ("OTS") had advised the Company -- as early as October 6, 2010 -- that it had determined that Meta had engaged in "unfair or deceptive acts or practices in violation of Section 5 of the Federal Trade Commission Act and the OTS Advertising Regulation in connection with the Bank's operation of the iAdvance program." The OTS "required the Bank to discontinue all iAdvance line of credit origination activity by October 13, 2010." 

The Company's report further disclosed that it anticipated that the discontinuance of the iAdvance program and the potential discontinuance of tax-related programs (which are subject to OTS approval) would "eliminate a substantial portion of [the Company's] gross profit (net revenue less direct expenses)." Finally, the Company stated that the discontinuance of the iAdvance program may result in elevated rates of nonpayment on outstanding iAdvance loans. 

Following the publication of this report, Meta shares fell over from an October 12, 2010 close of $33.23 per share to close on October 13, 2010 at only $22.25 per share -- losing about a third of their value overnight. Meta shares have continued to fall and currently trade around $14 per share.

Plaintiff seeks to recover damages on behalf of all Class members who purchased or otherwise acquired shares of Meta during the Class Period. If you purchased or otherwise acquired Meta shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than December 21, 2010.

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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.

If you are interested in discussing your rights as a Meta shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or

Bernstein Liebhard has pursued hundreds of securities, consumer and shareholder rights cases and recovered almost $3 billion for its clients. It has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last eight years.

You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Northern District of Iowa.

Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414

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