Global Payments (GPN) $3.6M Investor Settlement
Global Payments (GPN) has agreed to a $3.6M settlement with investors over claims that its subsidiary, Active Network, was charging consumers membership fees without their consent.
Outline
On October 18, 2022, the CFPB sued Active Network, a subsidiary of Global Payments, for enrolling consumers in a discount club and charging unauthorized fees. After the CFPB's announcement, $GPN fell and Global Payments faced a lawsuit from investors.
Timeline
On October 18, 2022: The CFPB sued Active Network for unauthorized consumer enrollments.
On October 19, 2022: Following the CFPB's announcement, $GPN stock price fell by 1.16%.
After the news, investors filed a lawsuit against Global Payments on the same day.
Background
On October 18, 2022, the CFPB filed a complaint against Active Network, a subsidiary of Global Payments.
The CFPB discovered that Active Network misled consumers into joining a discount club called Active Advantage without their knowledge. This club charged an annual fee of almost $90, often without the consumers realizing they had signed up.
Supposedly, people registered for events through Active Network and were presented with an “Accept” button. Many clicked this button, not knowing it meant they were enrolling in a paid membership for Active Advantage.
Since July 21, 2011, Active Network has collected over $300M in fees from more than three million consumers who were signed up for the program.
As a result of the CFPB complaint, $GPN fell on October 19, 2022 by approximately 1.16%.
Following the drop in stock price, on February 8, 2023, investors filed a lawsuit against Global Payments.
What can investors expect now?
Global Payments (GPN) has agreed to a $3.6M settlement with investors over claims that its subsidiary, Active Network, was charging consumers membership fees without their consent.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons who purchased or otherwise acquired the publicly traded securities of Global Payments, during the period from October 31, 2019, through October 18, 2022, inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.03 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.12 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.