GPN.US
id: 577
Global Payments (GPN) $3.6M Investor Settlement
Late claims are being considered for compensation, subject to approval.
N.D. Georgia
Court1:23-cv-00577
Case number10/31/2019
Class period Start10/18/2022
Class period End01/11/2025
Claim deadlineGlobal 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
Accepting Late Claims
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.03
Filing date
02/08/2023
Lead Plaintiff Deadline
04/10/2023
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
Court hearing date
12/11/2024
Exclusion deadline
11/20/2024
Objection deadline
11/20/2024
Hearing deadline
12/11/2024
Attorney fee
$1,298,800
Trades matching type
FIFO
+$3,600,000
Cash Settlement Amount