NEW YORK, July 30, 2015 /PRNewswire/ -- Robbins Geller
Rudman & Dowd LLP ("Robbins Geller")
(http://www.rgrdlaw.com/cases/amex/) today announced that a class
action has been commenced on behalf of an institutional investor in
the United States District Court for the Southern District of
New York on behalf of purchasers
of American Express Company ("AmEx") (NYSE:AXP) common stock during
the period between October 16, 2014
and February 11, 2015, inclusive (the
"Class Period").
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff's counsel, Samuel H. Rudman
or David A. Rosenfeld of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a
member of this class, you can view a copy of the complaint as filed
or join this class action online at
http://www.rgrdlaw.com/cases/amex/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges AmEx and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. AmEx, together with its subsidiaries, provides charge
and credit payment card products and travel-related services to
consumers and businesses worldwide. In addition to issuing
its own proprietary cards, AmEx has entered into a series of
co-branding relationships with travel providers and retailers.
The complaint alleges that during the Class Period, defendants
issued false and misleading statements and/or failed to disclose
material adverse information regarding AmEx's business and
prospects, including the status of its negotiations with U.S.
Costco to renew its co-branding agreement, which was set to expire
on March 31, 2016, and the financial
impact of that agreement on AmEx's business. As a result of
these false and misleading statements and/or omissions during the
Class Period, AmEx stock traded at artificially inflated prices,
reaching a high of nearly $95 per
share on December 29, 2014.
Then on February 12, 2015, AmEx
announced that it had lost the U.S. Costco co-branding relationship
and that the financial impact of that loss would be severe.
AmEx disclosed that the U.S. Costco co-branding agreement generated
8% of the Company's revenues in 2014, that one in ten U.S. AmEx
cards had been issued pursuant to the U.S. Costco co-branding
arrangement and that 20% of its outstanding loans had been made
pursuant to that agreement. Finally, as a result of the loss
of the U.S. Costco co-branding agreement, AmEx stated that the
Company's 2015 and 2016 profits would suffer and that the Company
would not be able to make any headway on its previous efforts to
increase earnings per share until 2017 at the very earliest.
In response to this announcement, the price of AmEx common stock
fell from a close of $85.40 per share
on February 11, 2015, to close at
$77.53 per share on February 13, 2015, a decline of nearly
$8 per share.
Plaintiff seeks to recover damages on behalf of all purchasers
of AmEx common stock during the Class Period (the "Class").
The plaintiff is represented by Robbins Geller, which has extensive
experience in prosecuting investor class actions including actions
involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S.
and international institutional investors in contingency-based
securities and corporate litigation. The firm has obtained
many of the largest securities class action recoveries in history
and was ranked first in both the amount and number of shareholder
class action recoveries in ISS's SCAS Top 50 report for
2014. Please visit http://www.rgrdlaw.com/cases/amex/ for
more information.
Contact:
Robbins Geller Rudman & Dowd
LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
djr@rgrdlaw.com
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SOURCE Robbins Geller Rudman & Dowd LLP