NEWTOWN, Pa., Nov. 29, 2022 (GLOBE NEWSWIRE) -- The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of investors of U.S. Bancorp (“U.S. Bancorp” or the “Company”) (NYSE: USB) common stock.
Investors who purchased USB common stock between August 1, 2019, and July 28, 2022 (the “Class Period”) may move the U.S. District Court for the Southern District of New York to appoint them as a lead plaintiff no later than December 27, 2022. A lead plaintiff is a representative who acts on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Eric Lechtzin, Esq. of Edelson Lechtzin LLP, toll-free at 1-844-696-7492, or by e-mail at elechtzin@edelson-law.com. A copy of the class action complaint can be viewed HERE.
Background on U.S. Bancorp
U.S. Bancorp, a financial services holding company headquartered in Minneapolis, Minnesota, provides a wide range of financial services, including lending and depository services, cash management, capital markets, and trust and investment management services. U.S. Bancorp’s banking subsidiary, U.S. Bank National Association (“U.S. Bank”), is engaged in the general banking business, principally in domestic markets.
The Securities Fraud Allegations Against U.S. Bancorp.
The Complaint alleges that, throughout the Class Period, Defendants made false and misleading statements about the Company’s business, operations, and compliance policies. These misstatements and material omissions created the false impression the Company was focusing on consumer protection when in fact it had been violating consumer protection laws and regulations for several years. Defendants failed to disclose that: (a) U.S. Bank created sales pressure on its employees that led them to open credit cards, lines of credit, and deposit accounts without consumers’ knowledge and consent; (b) since at least 2015, U.S. Bank and its corporate parent, U.S. Bancorp, were aware of such unauthorized conduct; (c) U.S. Bancorp failed to properly monitor its employees, and detect and stop such misconduct; (d) all the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny; and (e) U.S. Bancorp’s revenues were in part the product of unlawful conduct and, thus, inherently unsustainable.
On July 28, 2022, the Consumer Financial Protection Bureau (“CFPB”) issued a news release announcing that it had fined U.S. Bank $37.5 million for “illegally accessing its customers’ credit reports and opening checking and savings accounts, credit cards, and lines of credit without customers’ permission.” The CFPB reported that U.S. Bank “pressured and incentivized its employees to sell multiple products and services to its customers” to meet sales goals. On this news, USB stock fell $2.00 per share, or 4%, to close at $46.12 per share on July 28, 2022.
For more information, please contact:
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
About Edelson Lechtzin LLP
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
Source:
Edelson Lechtzin LLP2022 GlobeNewswire, Inc., source Press Releases
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