Advanta RediReserve Variable Rate Certificates and Investment Note Purchasers File Securities Fraud Class Action Lawsuit Complaint Against Advanta Corporation and KPMG Over Alleged Representations In Registration Statements.
A securities fraud class action lawsuit has been filed against Advanta Corporation (“Advanta”) certain directors and officers of Advanta and Advanta’s auditor KPMG LLP (“KPMG”) (collectively “Defendants”) in Pennsylvania state court and removed to the United States District Court for the Eastern District of Pennsylvania, alleging, among other things, that Defendants violated the Securities Act of 1933 by issuing misleading registration statements in connection with the offering of RediReserve Notes, according to class action lawsuit news reports.
The Advanta RediReserve securities fraud class action lawsuit complaint reportedly alleges that Advanta’s registration statements contained numerous positive statements regarding Advanta’s business, the adequacy of its capital reserves and the creditworthiness of its customers, but that these statements were allegedly false since:
- Advanta was allegedly engaged in “unsafe or unsound banking practices,”
- Advanta allegedly operated with insufficient capital for its risk profile
- Advanta allegedly operated in such a way that did not ensure satisfactory earnings,
- Advanta was allegedly unfairly increasing the interest rate it charged its credit card customers, and
- Advanta’s allegedly weak underwriting standards purportedly resulted in numerous customers that were not creditworthy.
The Advanta RediReserve securities class action complaint is reportedly brought on behalf of those purchasing Advanta RediReserve variable rate certificates and investment notes (collectively, the “RediReserve Notes”) during the period beginning June 24, 2007 through November 8, 2009, inclusive (the “Class Period”).
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