Federman & Sherwood Announces the Filing of a
Securities Class Action Lawsuit against Higher One Holdings, Inc.
Oklahoma City, OK (May 30, 2014) – On May 27, 2014, a securities class action lawsuit was filed in the United States District Court for the District of Connecticut against Higher One Holdings, Inc. (NYSE: ONE). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is August 7, 2012 through May 12, 2014. More specifically, this litigation was filed because Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company's marketing and disclosure practices were in violation of the Federal Trade Commission Act; (ii) the Company's allegedly improper marketing and disclosure practices would subject Higher One to potential restitution demands and civil penalties; and (iii) the amounts of potential restitution demands and civil penalties could reach levels that would cause an event of default under the Company's Credit Facility. On May 12, 2014 Higher One Holdings filed its Form 10-Q with the Securities and Exchange Commission, announcing its financial and operating results for the first quarter of 2014, and also disclosed that the Company was facing penalties from the Federal Reserve over alleged violations tied to its marketing of a debit account for financial aid refunds. According to the filing, such penalties could trigger a default on the Company's Credit Facility. On the news, Higher One shares fell $0.90, or over 14% on heavy trading volume, to close at $5.51 on May 13, 2014.
Plaintiff seeks to recover damages on behalf of all Higher One Holdings, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, July 28, 2014 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Lynn.
Posted on Fri, May 30, 2014
by K. Lynn Nunn filed under