A lawsuit was filed on behalf of investors in Comerica Incorporated (NYSE: CMA) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/06/2023 -- An investor, who purchased shares of Comerica Incorporated (NYSE: CMA), filed a lawsuit over alleged violations of Federal Securities Laws by Comerica Incorporated.
Investors who purchased shares of Comerica Incorporated (NYSE: CMA) have certain options and for certain investors are short and strict deadlines running. Deadline: October 20, 2023. NYSE: CMA investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Dallas, TX based Comerica Incorporated, through its subsidiaries, provides various financial products and services.
On May 30, 2023, American Banker issued an article titled "Comerica in 'serious violation' of Treasury's Direct Express program". The article states "Comerica Bank officials privately acknowledged significant compliance failures in their operation of a Treasury Department program that provides federal benefits on prepaid cards to millions of unbanked Americans."
The article further states that Comerica Incorporated executive said the bank faced "serious contract violation" for allowing fraud disputes and data on Direct Express cardholders to be handled out of a vendor's office in Lahore, Pakistan, the documents show.
Personally identifiable information on veterans, Social Security and disability recipients were routinely shared and handled by i2c Inc., a vendor based in Redwood City, Calif., with an office in Lahore, Pakistan — in violation of the government contract, the Comerica executive said. The Treasury's agreement with the bank states that all services provided "shall be performed in the United States or its territories."
Shares of Comerica Incorporated (NYSE: CMA) closed on June 16, 2023, at $41.64 per share.
The plaintiff claims that between February 9, 2021 and May 29, 2023, the defendants made false and/or misleading statements and/or failed to disclose, among other things, that Comerica failed 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, that 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, that 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 instanced of fraud, and that as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Those who purchased shares of Comerica Incorporated (NYSE: CMA) have certain options and should contact the Shareholders Foundation.
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