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id: 805

Comerica Incorporated (CMA) Regulation Violation Case

C.D. California
Case number
09 Feb 2021
Class period Start
29 May 2023
Class period End
20 Oct 2023
Lead Plaintiff motion deadline
  • In May 2023, American Banker released an article discussing serious Comerica violations of Treasury’s Direct Express program.
  • $CMA fell 7%, damaging shareholders.
  • Investors suspect Comerica of violations that led to financial losses.
On May 29, 2023, American Banker released an article titled “Comerica in ‘serious violation’ of Treasury’s Direct Express program.”
  • The article discussed significant issues with i2c Inc. and Conduent Inc., two vendors to whom Comerica contracts out the day-to-day operations of Direct Express, including handling cardholder information through an office in Lahore, Pakistan, lack of oversight, and failures to communicate with beneficiaries.
  • The article detailed Comerica’s alleged violations of Regulation E.
On this news, $CMA fell 7% over two trading sessions, damaging investors.

Investors have reasons to suspect Comerica and accountable executives of failing to provide meaningful oversight over the vendors to whom it contracted out day-to-day operations of the Direct Express program, a system through which it is contracted to provide federal benefits to millions of Americans without bank accounts.
  • As a result of violations in the day-to-day operations of Direct Express, including handling fraud disputes and allowing sensitive data to be handled out of a vendor’s office in Pakistan, Comerica was not in compliance with the Federal contract, and knew it was not in compliance;
  • Comerica knew and failed to disclose that it was in potential violation of Regulation E due to inadequate fraud prevention in the Direct Express program and responses to instances of fraud;
As a result, the statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

When the true details entered the market, the lawsuit claims that investors suffered damages.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Failure to Disclose
Suspected Party
Security Type
Trade Direction
Shock Event Date
29 May 2023
Filing date
21 August 2023
Lead Plaintiff Deadline
20 October 2023
Collecting participants…

Comerica Inc

Comerica Incorporated, through its subsidiaries, provides various financial products and services. The company operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments...

    Financial Services
    Banks - Regional
    Comerica Bank Tower, Dallas, TX, United States, 75201-6404