SOURCE: Kendall Law Group

Kendall Law Group

October 19, 2009 13:31 ET

Kendall Law Group Announces Securities Class Action Against Advanta Corp.

DALLAS, TX--(Marketwire - October 19, 2009) - Kendall Law Group, led by a former federal judge, today announced that a lawsuit has been filed against Advanta Corp. (NASDAQ: ADVNA) for securities violations related to public statements made by the company between October 31, 2006 and November 27, 2007.

Any shareholder, who purchased Advanta stock during the above time period, may move the Court to serve as a plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by December 13, 2009. A lead plaintiff is a class member who acts on behalf of other class members in directing the litigation. Your ability to share in any recovery is not, affected by the decision to serve as a lead plaintiff. Any member of the class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint, filed in the Eastern District of Pennsylvania, charges Advanta and certain of its officers and directors with violations of the federal securities laws concerning a series of false and misleading statements by engaging in improper behavior, harming its investors by not disclosing the impact of the economic environment and the deteriorating credit trends on its business. They also failed to adequately and timely record losses for tens of millions of dollars worth of impaired credit card receivables. Defendants concealed the adverse effects on their business related to their manipulations of the cash rewards program, angering and losing creditworthy customers. Unknown to investors, Advanta had been extremely aggressive in granting credit to customers and small business owners without verifying their ability to pay, to the degree that customers' default rate was almost six times worse than the industry average. Advanta also failed to properly account for their continuing delinquent customers and credit trends in the company's portfolio, resulting in large charges to reflect impairments.

The truth of the company's business performance came out on November 27, 2007 when Advanta held a conference call with analysts and investors announcing that guidance for 2008 would not be released due to the volatility of the economy. Since the release of the third quarter 2007 results on October 25, 2007, the percent of customers delinquent on their credit card payments had increased. As a result of the announcement, Advanta's stock dropped to close at $11.06 per share on November 27, 2007, down 72% than the $34.07 high in June 2007.

Led by a former federal judge and former U.S. Attorney, Kendall Law Group has the credentials to pursue any type of complex securities litigation in the nation. If you wish to learn more about your rights as a shareholder, contact attorney Hamilton Lindley at 877-744-3728 or hlindley@kendalllawgroup.com.

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