Fifth Third Bancorp
Lead Plaintiff Deadline: 06/08/2020
SUMMARY OF CASE:
Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against Fifth Third Bancorp (“Fifth Third” or the “Company”) (NASDAQ: FITB) and certain of its officers and directors alleging violations of federal securities laws. If you purchased Fifth Third securities between February 26, 2016 and March 6, 2020, inclusive (the “Class Period”), you are encouraged to contact Scott+Scott attorney Rhiana Swartz for additional information at (844) 818-6980 or email@example.com. If you have losses of over $100,000, you are encouraged to contact Scott+Scott regarding serving as lead plaintiff.
The Complaint alleges that Fifth Third made materially false and misleading statements, as well as failed to disclose material adverse facts about the Company’s, and its subsidiary Fifth Third Bank, N.A.’s (“Fifth Third Bank”), business, operational, and compliance policies. Specifically, the Company 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, stop misconduct, and remediate harmed consumers; (iv) the foregoing subjected the Company to foreseeable, heightened regulatory scrutiny or investigation; and (v) Fifth Third’s revenues were in part the product of unlawful conduct and thus unsustainable.
On March 2, 2020, Fifth Third filed an annual report disclosing that 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.”
On this news, Fifth Third’s stock price fell $0.51 per share, or 2.10%, over the following trading sessions to close at $23.68 per share on March 5, 2020.
Then, on March 9, 2020, the CFPB announced that it had filed a lawsuit against Fifth Third Bank, alleging that, until at least 2016, Fifth Third Bank: “opened deposit and credit-card accounts in consumers’ names; transferred funds from consumers’ existing accounts to new, improperly opened accounts; enrolled consumers in unauthorized online-banking services; and activated unauthorized lines of credit on consumers’ accounts.” The CFPB further alleged that, despite knowing this since 2008, “Fifth Third [Bank] took insufficient steps to detect and stop the conduct and to identify and remediate harmed consumers.” Consequently, the CFPB concluded that Fifth Third Bank “violated the Consumer Financial Protection Act’s prohibition against unfair and abusive acts or practices as well as the Truth in Lending Act and the Truth in Savings Act and their implementing regulations.”
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, and fell an additional $1.76 per share the following trading day to close at $15.90 per share on March 12, 2020—a total decline of 13.11%.
What You Can Do
If you purchased Fifth Third securities between February 26, 2016 and March 6, 2020, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Rhiana Swartz at (844) 818-6980 or firstname.lastname@example.org. The lead plaintiff deadline is June 8, 2020.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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