Christina DeIasi | Bloomberg LawIn re Meta Financial Group, Inc. Securities Litig., No. 10-CV-04108 (N.D. Iowa July 18, 2011) A securities fraud class action against Meta Financial Group, Inc. (Meta) and certain officers (collectively, Defendants) survived Defendants' motion to dismiss. Plaintiffs claim, in short, that Meta failed to disclose an Office of Thrift Supervision (OTS) investigation into iAdvance, a micro-lending product. The U.S. District Court for the Northern District of Iowa held that plaintiffs' securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 andRule 10b-5 thereunder satisfy the heightened pleading requirements of Federal Rule of Civil Procedure 9(b) and the Private Securities Litigation Reform Act of 1995.
OTS Investigation of iAdvance
Adequate Allegations of Fraud
the combination of the allegations of the individual defendants' positions with Meta , their alleged access to information and the disclosures in question, and the nature of the alleged mispresentations and omissions give rise, at the very least, to a "strong inference" that the individual defendants were severely reckless in allowing the disclosures to be released or to stand and that all of the defendants had the motive and opportunity to make the allegedly fraudulent disclosures or not to recall them after they were made.
To view additional stories from Bloomberg Law® request a demo now