Securities Class Action Lawsuit Filed Against Bank One Corp.

Strategic Insights -

The securities class action lawsuit was filed against Bank One Corp., First USA, and certain officers and directors on behalf of all persons and entities who purchased Bank One stock during the period from October 22, 1998, to November 10, 1999. The complaint alleges that defendants made false and misleading statements about the business, financial condition, earnings, and prospects of Bank One and its subsidiary, First USA, resulting from improperly recorded revenues from late fees, penalties, and interest. After a series of partial disclosures, the stock price of Bank One plummeted from $63.563 to $34.625 per share.

Key Takeaways:

  • The class action lawsuit was filed on December 14, 1999, against Bank One Corp., First USA, and certain officers and directors.
  • The lawsuit alleges that defendants made false and misleading statements about the business, financial condition, earnings, and prospects of Bank One and its subsidiary, First USA.
  • The complaint specifically states that Bank One achieved financial results from First USA's improperly recorded revenues from late fees, penalties, and interest by failing to post credit card payments on time.
  • After partial disclosures from August 24, 1999, to November 10, 1999, the stock price of Bank One plummeted from its Class Period high of $63.563 per share to close at $34.625 per share on November 10, 1999.
  • The lawsuit is represented by Wechsler Harwood Halebian & Feffer LLP, Bull & Lifshitz, LLP, and GARWIN, BRONZAFT, GERSTEIN & FISHER, L.L.P.
  • The law firms have extensive experience representing shareholders in class actions.
  • If you purchased Bank One common stock during the Class Period, you may have the opportunity to serve as a lead plaintiff.

Statistics:

  • The stock price of Bank One plummeted from $63.563 to $34.625 per share on November 10, 1999.
  • The complaint alleges that Bank One achieved financial results from First USA's improperly recorded revenues from late fees, penalties, and interest by failing to post credit card payments on time.
  • The lawsuit was filed on December 14, 1999.

Sources:

  • Wechsler Harwood Halebian & Feffer LLP
  • Bull & Lifshitz, LLP
  • GARWIN, BRONZAFT, GERSTEIN & FISHER, L.L.P.