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.
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.
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.