Robbins LLP Alerts Shareholders to Class Action Against Marqeta, Inc. Warning of Regulatory Challenges

Robbins LLP Alerts Shareholders to Class Action Against Marqeta, Inc.

In a recent development, Robbins LLP has announced a class action lawsuit aimed at protecting shareholders of Marqeta, Inc. (NASDAQ: MQ) from potential financial losses. This legal move comes on the heels of serious allegations that the company failed to adequately disclose significant regulatory scrutiny of its business operations and how that scrutiny might affect its future performance.

The Allegations

The lawsuit specifically involves individuals and entities that acquired Marqeta securities during a specified period, from August 7, 2024, to November 4, 2024. During this timeframe, the complaint states that Marqeta’s executives did not reveal to investors the extent of the regulatory challenges facing the company. Instead, they continued to provide optimistic guidance that did not reflect the significant hurdles Marqeta was encountering in the banking environment.

According to details from the complaint, Marqeta announced its third-quarter financial results on November 4, 2024, coupled with a downward revision of its guidance for the following quarter. This revision was attributed to newly realized difficulties stemming from increased regulatory scrutiny over the banking practices relevant to Marqeta's operations. The company's executives, including the CEO and CFO, allegedly had knowledge of these challenges from the start of the year but chose not to disclose them until they were forced to do so during the earnings announcement.

The immediate consequence of this disclosure was severe. Marqeta shares plummeted, with the stock price dropping by $2.53 per share, which represents a staggering 42.5% decline, closing at $3.42 on November 5, 2024. This sharp downturn has left many shareholders reeling and seeking legal recourse.

Applicable Actions for Shareholders

Affected stockholders now face a critical decision. Those interested in taking a proactive role in the class action lawsuit must submit their application to serve as lead plaintiffs by February 7, 2025. Lead plaintiffs play a crucial role in guiding the litigation on behalf of the class, providing oversight and direction in the legal proceedings. However, participation in the case is not a prerequisite for financial recovery; shareholders can choose to remain as absent class members if they prefer.

The representation in this class action lawsuit will be contingent on a no-win, no-fee basis, meaning shareholders will not be required to pay any legal fees or expenses unless there is a successful recovery.

About Robbins LLP

Founded in 2002, Robbins LLP has established itself as a leader in shareholder rights litigation. The firm has dedicated its efforts to helping shareholders reclaim losses and pushing for improvements in corporate governance standards. The experienced staff aims to hold company executives accountable for any wrongdoing and to ensure that shareholders are informed about their rights and available legal remedies.

For those who wish to stay informed about developments related to the class action lawsuit against Marqeta, or to receive alerts on corporate misconduct, Robbins encourages interested parties to sign up for their Stock Watch service.

Robbins LLP is committed to transparency and accountability in corporate governance, emphasizing the importance of disclosing relevant information to shareholders. They encourage any affected shareholders to reach out or visit their official site for more details about how to engage in the ongoing class action lawsuit and to understand the implications of the allegations made against Marqeta, Inc.