defendants concealed the impact of these trends on the Company so as to unjustly enrich themselves while in possession of material adverse information concerning Advanta’s operations and unsound mortgage practices.
Coral Gables, Fla. (Vocus) December 8, 2009
The Securities Law Firm of Tramont Guerra & Núñez, P.A. (TGN) makes an announcement to all Advanta Corporation Class A (NASDAQ:ADVNA) and Class B (NASDAQ:ADVNB) common share investors concerning the class action lawsuit (Case No. 09 CV 04730) filed on October 10, 2009, in the United States District Court for the Eastern District of Pennsylvania.
The class action lawsuit was filed on behalf of investors in Advanta Corporation (“Advanta”) common stock who suffered investment losses during the class period from October 31, 2006 through November 27, 2007. The class action alleges Advanta, “issued materially false and misleading statements regarding the Company’s business and financial results.” The lawsuit further alleges defendants failed to disclose the deterioration of credit trends on business operations and “defendants concealed the impact of these trends on the Company so as to unjustly enrich themselves while in possession of material adverse information concerning Advanta’s operations and unsound mortgage practices.” Prospective class members should consider whether an individual securities arbitration claim filed with the Financial Industry Regulatory Authority, (FINRA) is more effective than a class action for recovery of their investment losses.
Many investors were advised by their financial advisors that an investment in Advanta was a suitable investment for investors. In some instances, individuals maintained concentrated positions in the banking sector which may have exposed investors to unnecessary and uncompensated risk. Brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice in accordance with the FINRA Sales Practice Rules and Regulations. Recommendations of an unsuitable investments and/or concentrated investments in the financial sector are both causes of action that form the basis for individual securities arbitration claims filed with FINRA. In some cases, shareholders must “opt-out” as a class member in order to pursue a securities arbitration claim, otherwise this legal option is not available.
The Securities Law Firm of Tramont Guerra & Núñez, PA is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $100,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.