NEW YORK, July 31, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased American Express Company (“AmEx” or the “Company”) (NYSE:AXP) securities between October 16, 2014 and February 11, 2015, inclusive (“Class Period”), alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
The Complaint alleges that Defendants issued false and misleading statements regarding the Company’s business and prospects, including the status of its negotiations with U.S. Costco to renew its co-branding agreement, which was set to expire on March 31, 2016, and the financial impact of that agreement on the Company’s business. As a result, the Company’s stock traded at artificially inflated prices, reaching a high of nearly $95 per share on December 29, 2014.
On February 12, 2015, the Company announced that it had lost the U.S. Costco co-branding relationship and that the financial impact of that loss would be severe. The Company disclosed that the U.S. Costco co-branding agreement generated 8% of the Company’s revenues in 2014, that one in ten U.S. AmEx cards had been issued pursuant to the U.S. Costco co-branding arrangement and that 20% of its outstanding loans had been made pursuant to that agreement. Finally, as a result of the loss of the U.S. Costco co-branding agreement, the Company stated that its 2015 and 2016 profits would suffer and that it would not be able to make any headway on its previous efforts to increase earnings per share until 2017. In response to this announcement, the price of the Company’s securities fell from a close of $85.40 per share on February 11, 2015, to close at $77.53 per share on February 13, 2015, a decline of nearly $8 per share.
If you wish to serve as lead plaintiff, you must move the Court no later than September 28, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at email@example.com or firstname.lastname@example.org.
Attorney Advertising -- Prior results do not guarantee a similar outcome with respect to any future matter. Please visit our website at http://www.gme-law.com for more information about the firm.
Source:Gainey McKenna& Egleston