SOURCE: Bronstein, Gewirtz & Grossman, LLC

October 20, 2009 16:40 ET

Bronstein, Gewirtz & Grossman, LLC Announces Class Action Lawsuit Against Advanta Corp.

NEW YORK, NY--(Marketwire - October 20, 2009) - Bronstein, Gewirtz & Grossman, LLC announces that a class action has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of those who purchased or otherwise acquired stock of Advanta Corp. ("Advanta" or the "Company") (NASDAQ: ADVNA), during the period between October 31, 2006 through and including November 27, 2007 (the "Class Period").

The Complaint charges the defendant with violations of the Securities and Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's financials. The Complaint alleges that defendants engaged in improper behavior that harmed Advanta's investors by failing to disclose the impact of the economic environment and the deteriorating credit trends on its business and that the Company failed to adequately and timely record losses for its impaired loans. Advanta also failed to properly account for their continuing delinquent customers, causing its financial results to be materially false.

Then on November 27, 2007, Advanta held a conference call with analysts and investors announcing that guidance for 2008 would not be released due to volatility of the economy. Additionally, 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 made payments, indicating a trend of charge-offs. As a result of these announcements, Advanta's stock dropped to close at $11.06 per share on November 27, 2007, down 72% that the 34.07 high in June 2007.

No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. December 13, 2009 is the deadline for investors to seek a lead plaintiff appointment.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.

Contact Information

  • Peretz Bronstein
    Eitan Kimelman
    Bronstein, Gewirtz & Grossman, LLC
    212-697-6484
    Email Contact