|Company Name||U.S. Bancorp|
|Class Period||August 01, 2019 to July 28, 2022|
|Lead Plaintiff Motion Deadline||December 27, 2022|
On July 28, 2022, after an investigation by the Consumer Financial Protection Bureau into its sales practices, the Company’s subsidiary U.S. Bank National Association (“U.S. Bank”) was fined $37.5 million for illegally accessing its customers’ credit reports and opening credit cards, lines of credit, and checking and savings accounts without customers’ permission.
On this news, U.S. Bancorp’s stock fell $2.09, or 4.3%, to close at $46.12 per share on July 28, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) U.S. Bank created sales pressure on its employees that led them to open credit cards, lines of credit, and deposit accounts without consumers’ knowledge and consent; (2) since at least 2015, U.S. Bank and by extension, U.S. Bancorp, was aware of such unauthorized conduct and that it was violating relevant regulations and laws aimed at protecting its consumers; (3) U.S. Bancorp failed to properly monitor its employees from engaging in such unlawful conduct, detect and stop the misconduct, and identify and remediate harmed consumers; (4) all the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny or investigation; (5) U.S. Bancorp’s revenues were in part the product of unlawful conduct and thus unsustainable; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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