Advanta Corp. Investment Notes Investor Lawsuit

If you purchased Advanta RediReserve variable rate certificates and investment notes during the period beginning June 24, 2007 through November 8, 2009, you have certain options and there are strict and short deadlines running. Deadline: October 08, 2010. Those Advanta Corp. Investment Notes and RediReserve Variable Rate Certificates investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Advanta
Case Name: 
Advanta Shareholder Class Action 07/23/2010
Case Status: 
Lawsuit Filed
Affected Securities
Advanta Corp. Investment Notes
Advanta Corp. RediReserve Variable Rate Certificates
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
07/23/2010
Class Period Begin: 
06/24/2007
Class Period End: 
11/08/2009
Deadline To File for Lead: 
10/08/2010
Summary: 

An investor in Advanta Corp. RediReserve Variable Rate Certificates filed a lawsuit on behalf of those purchasing Advanta RediReserve variable rate certificates and investment notes during the period beginning June 24, 2007 through November 8, 2009, against certain current and former officers and directors of the Advanta Corporation ("Advanta") and KPMG LLP, Advanta's auditor.

According to the complaint the plaintiff alleges that between June 24, 2007 and November 8, 2009, Advanta Corp's registration statements in connection with the offering of Advanta RediReserve variable rate certificates and investment notes contained materially false statements of facts. The complaint alleges that the individual defendants in this action signed Advanta's materially false registration statements. The complaint further alleges that KPMG served as Advanta Corp's auditor between June 24, 2007 and November 8, 2009, and vouched for the false statements in AdvantaCorp.'s registration statements.

Chuck Jaffe, of MarketWatch said in April 2009 that Advanta Corp. Investment Notes and RediReserve Variable Rate Certificates were “the Stupid Investment of the Week”, because “Investors who flock to these high-yield notes may find that the current conditions are just wrong enough so that they will get burned”. Chuck Jaffe noted that “Advanta's investment notes are unsecured debt, without any reserve to pay them off and with no insurance protection from the Federal Deposit Insurance Corp” and “that the only way you get paid in full when the notes mature is if Advanta remains sufficiently profitable to get your money back.”