Fifth Third Bancorp
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of those who acquired Fifth Third Bancorp (“Fifth Third” or the “Company”) (NASDAQ: FITB) securities during the period from February 26, 2016 through March 6, 2020 (the “Class Period”). Investors have until June 8, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) as a result of Fifth Third Bank’s aggressive incentive policies to promote its cross-sell strategy, Fifth Third Bank employees engaged in unauthorized conduct with customer accounts; (ii) since at least 2008, Fifth Third Bank, and by extension, Fifth Third, was aware of such unauthorized conduct and, thus, that it was violating relevant regulations and laws aimed at protecting its consumers; (iii) Fifth Third failed to properly implement and monitor its cross-sell program, detect and stop misconduct, and identify and remediate harmed consumers; (iv) all the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny or investigation; and (v) Fifth Third’s revenues were in part the product of unlawful conduct and thus unsustainable.
On March 2, 2020, Fifth Third announced that the U.S. Consumer Financial Protection Bureau (“CFPB”) staff “notified Fifth Third that it intends to file an enforcement action in relation to alleged unauthorized account openings.” On this news, Fifth Third’s stock price fell $0.72 per share, or 2.9%, to close at $23.68 on March 5, 2020.
On March 9, 2020, the CFPB announced that it had filed a lawsuit against Fifth Third Bank in federal court. The CFPB disclosed additional information including that, allegedly, “for several years,” and until at least 2016, “Fifth Third [Bank], without consumers’ knowledge or consent: opened deposit and credit-card accounts in consumers’ names; transferred funds from consumers’ existing accounts to new, improperly opened accounts; enrolled consumers in unauthorized online-banking services; and activated unauthorized lines of credit on consumers’ accounts.” The CFPB further alleged that, “despite knowing since at least 2008 that employees were opening unauthorized consumer-financial accounts, Fifth Third [Bank] took insufficient steps to detect and stop the conduct and to identify and remediate harmed consumers.”
On this news, Fifth Third’s stock price fell $0.64 per share, or 3.5%, to close at $17.66 on March 11, 2020, and fell an additional $1.76 per share the following trading day to close at $15.90 on March 12, 2020—a total decline of 13.1%.
If you acquired Fifth Third securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.