COMERICA CLASS ACTION LAWSUIT: 4 FREQUENTLY ASKED QUESTIONS

10/11/2023

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The Comerica class action lawsuit seeks to represent purchasers or acquirers of publicly traded Comerica Incorporated (NYSE: CMA) securities between February 9, 2021 and May 29, 2023, inclusive (the “Class Period”). Captioned Ramos v. Comerica Incorporated, No. 23-cv-06843 (C.D. Cal.), the Comerica class action lawsuit charges Comerica and certain of its top executive officers with violations of the Securities Exchange Act of 1934 .

If you suffered losses in Comerica stock and wish to serve as lead plaintiff in the Comerica class action lawsuit, please provide your information below. You can also contact Comerica Stock Loss Lawyer Timothy L. Miles by calling 855/846-6529 or via e-mail at [email protected] or by submitting a contact form. Lead plaintiff motions for the Comerica class action lawsuit must be filed with the court no later than October 20, 2023.

Read on for answers to four frequently asked questions about the Comerica class action lawsuit.

WHAT ARE THE ALLEGATIONS IN THE COMERICA CLASS ACTION LAWSUIT?

Comerica is a financial services company and the issuing bank for the U.S. Department of the Treasury’s Direct Express program, which issues electronic payments (such as Social Security of veterans’ benefits) to individuals who do not have bank accounts. As part of the Direct Express program, Comerica must adhere to Regulation E, which “provides a basic framework that establishes the rights, liabilities, and responsibilities of participants in electronic fund transfer systems such as automated teller machine transfers, telephone bill-payment services, point-of-sale (POS) terminal transfers in stores, and preauthorized transfers from or to a consumer’s account (such as direct deposit and social security payments).”

The Comerica class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Comerica failed to provide meaningful oversight over the vendors to whom it contracted out day-to-day operations of the Direct Express program, a system through which Comerica is contracted to provide federal benefits on debit cards to millions of Americans without bank accounts; (ii) as a result of violations in the day-to-day operations of Direct Express, including handling fraud disputes and allowing sensitive data to be handled out of a vendor’s office in Pakistan, Comerica was not in compliance with its federal contract, and knew it was not in compliance; and (iii) Comerica knew and failed to disclose that it was in potential violation of Regulation E due to inadequate fraud prevention in the Direct Express program and responses to instances of fraud.

The Comerica class action lawsuit alleges that on May 29, 2023, American Banker released an article titled “Comerica in ‘serious violation’ of Treasury’s Direct Express program.” The article discussed significant issues with i2c Inc. and Conduent Inc., two vendors to whom Comerica contracts out the day-to-day operations of Direct Express, including handling cardholder information through an office in Lahore, Pakistan, lack of oversight, and failures to communicate with beneficiaries. The article further detailed Comerica’s alleged violations of Regulation E. On this news, the price of Comerica stock declined more than 7% over two trading sessions, damaging investors who suffered losses in Comerica stock.

WHAT IS THE LEAD PLAINTIFF PROCESS IN THE COMERICA CLASS ACTION LAWSUIT?

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased and suffered losses in Comerica stock to seek appointment as lead plaintiff in the Comerica class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.

A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. If you suffered losses in Comerica stock stock, and have further questions, contact Comerica stock stock loss Lawyer Timothy L. Miles today who will fight to recover your damages in a Comerica class action lawsuit if you suffered losses in Comerica stock stock.

IF I SUFFERED LOSSES IN COMERICA STOCK, WHAT ARE THE BENEFITS OF SERVING AS LEAD PLAINTIFF IN THE CLASS ACTION AGAINST COMERICA?

Serving as a Lead Plaintiff in the Comerica class action lawsuit has several advantages and important benefits including:

A Lead Plaintiff is able to negotiate more competitive attorney fees and reduce other litigation costs by actively monitoring the class counsel.
Lead Plaintiff has the benefit of being able to manage the litigation primarily by overseeing and monitoring the progress of the action and the efforts of counsel, and being able to review and comment on important filings and other documents pertaining to the prosecution of the action.
There is no financial risk in serving as a Lead Plaintiff because Lead Counsel advances all costs and expenses incurred it the prosecution of the case and will be reimbursed only if there is a successful settlement or judgment recovery on behalf of the class.
Lead Plaintiff has the benefit involved and active in all negotiations relating to any settlement.
Lead Plaintiffs that continue owning the stock of the defendant will enjoy the long-term benefits from governance reform resulting from the litigation.

Thus, there are numerous benefits and other advantages to serving as lead plaintiff in the Comerica class action lawsuit if you suffered losses in Comerica stock stock.

HOW WAS THE CLASS PERIOD DETERMINED IN THE COMERICA CLASS ACTION LAWSUIT?

In a securities fraud class action, the class period refers to a period of time in which it is alleged the price of the company’s stock was artificially inflated due to false and misleading statements made by company executives. The class period starts when the company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading. The class period ends when the truth is revealed to the investing public through a corrective disclosure.

In order to be a part of the class in the Comerica class action lawsuit, you must have suffered losses in Comerica stock by purchasing during the class period when it is alleged the price of the stock was artificially inflated to be included in the class action against Comerica.

CONTACT A COMERICA STOCK LOSS LAWYER TODAY IF YOU SUFFERED IN LOSSES IN COMERICA STOCK ABOUT AN COMERICA CLASS ACTION LOSSES LAWSUIT

If you suffered losses in Comerica stock, contact Comerica stock loss lawyer Timothy L. Miles today for a free case evaluation about a class action against Comerica. Call today and see what a Comerica stock loss lawyer can do for you if you suffered losses in Comerica stock.