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GPN.US
id: 577

Global Payments (GPN) $3.6M Investor Settlement

N.D. Georgia
Court
1:23-cv-00577
Case number
31 Oct 2019
Class period Start
18 Oct 2022
Class period End
Global Payments (GPN) has agreed to a $3.6M settlement with investors over claims that its subsidiary, Active Network, was charging consumers membership fees without their consent.

Outline

On October 18, 2022, the CFPB sued Active Network, a subsidiary of Global Payments, for enrolling consumers in a discount club and charging unauthorized fees. After the CFPB's announcement, $GPN fell and Global Payments faced a lawsuit from investors. Timeline
  • On October 18, 2022: The CFPB sued Active Network for unauthorized consumer enrollments.
  • On October 19, 2022: Following the CFPB's announcement, $GPN stock price fell by 1.16%.
  • After the news, investors filed a lawsuit against Global Payments on the same day.
Background

On October 18, 2022, the CFPB filed a complaint against Active Network, a subsidiary of Global Payments.

The CFPB discovered that Active Network misled consumers into joining a discount club called Active Advantage without their knowledge. This club charged an annual fee of almost $90, often without the consumers realizing they had signed up.

Supposedly, people registered for events through Active Network and were presented with an “Accept” button. Many clicked this button, not knowing it meant they were enrolling in a paid membership for Active Advantage.

Since July 21, 2011, Active Network has collected over $300M in fees from more than three million consumers who were signed up for the program.

As a result of the CFPB complaint, $GPN fell on October 19, 2022 by approximately 1.16%.

Following the drop in stock price, on February 8, 2023, investors filed a lawsuit against Global Payments.

What can investors expect now?

Global Payments (GPN) has agreed to a $3.6M settlement with investors over claims that its subsidiary, Active Network, was charging consumers membership fees without their consent.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Stipulative Settlement
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.03
Filing date
08 February 2023
Lead Plaintiff Deadline
10 April 2023
Plaintiffs
Mike Shafer
Attorneys
Johnson Fistel, LLP (Marietta, GA), Lowey Dannenberg, P.C. (White Plains, NY)
Defendants
Jeff Sloan, Cameron Bready, Paul Todd, Josh Whipple
Judge
Leigh Martin May
Administrator
A.B. Data Ltd
Trades matching type
FIFO
+$3,600,000
Cash Settlement Amount

Global Payments Inc

Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, ...

    Ticker
    GPN.US
    ISIN
    US37940X1028
    CIK
    1123360
    Sector
    Industrials
    Industry
    Specialty Business Services
    Country
    USA
    Address
    3550 Lenox Road, Atlanta, GA, United States, 30326