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Capital One Financial Corporation Class Action Lawsuit

16 days left to seek lead plaintiff status

Case Summary

Company Name
Capital One Financial Corporation
Stock Symbol
COF
Class Period
February 2, 2018 to July 29, 2019 (see footnote 1)
Motion Deadline
December 1, 2019
Court
Eastern District of New York

On October 2, 2019, the Capital One Financial Corporation class action lawsuit was filed charging Capital One and certain of its officers with violations of the Securities Exchange Act of 1934. The Capital One class action lawsuit was commenced in the Eastern District of New York on behalf of purchasers of Capital One securities between February 2, 2018 and July 29, 2019[1] (the “Class Period”) and is captioned Minsky v. Capital One Financial Corporation, No. 1:19-cv-05594.

Capital One operates as a bank holding company for Capital One Bank (USA), N.A. and Capital One, N.A., which provide various financial products and services in the United States, the United Kingdom, and Canada.

The Capital One class action lawsuit alleges that, contrary to defendants’ representations during the Class Period that Capital One “safeguard[ed] [its] customers’ and [its] own information and technology,” Capital One did not maintain robust information security protections to shield personal information against security breaches, which led to a heightened risk of a cyberattack against Capital One. As a result of defendants’ false statements, Capital One securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $100 per share.

Then on July 29, 2019, after the market closed, Capital One announced it had suffered a data breach affecting over 106 million of its customers in the United States and Canada. According to Capital One’s press release, Capital One had determined that “there was unauthorized access by an outside individual who obtained certain types of personal information relating to people who had applied for its credit card products and to Capital One credit card customers.” Based on Capital One’s analysis, the event affected approximately 100 million individuals in the United States and 6 million in Canada. The information accessed included “personal information Capital One routinely collects at the time it receives credit card applications, including names, addresses, zip codes/postal codes, phone numbers, email addresses, dates of birth, and self-reported income.” According to a criminal complaint brought by the Federal Bureau of Investigation against the hacker, while some of the data was tokenized or encrypted, “data including applicant’s names, addresses, dates of birth and information regarding their credit history ha[d] not been tokenized.” As a result of this information being disclosed to the public, the price of Capital One shares fell $5.71 per share, or more than 5%, to close at $91.21 per share on July 30, 2019.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Capital One securities during the Class Period to seek appointment as lead plaintiff in the Capital One class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Capital One class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Capital One class action lawsuit. An investor’s ability to share in any potential future recovery of the Capital One class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Capital One class action lawsuit or have questions concerning your rights regarding the Capital One class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at bcochran@rgrdlaw.com. Lead plaintiff motions for the Capital One class action lawsuit must be filed with the court no later than December 1, 2019.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

[1]    The complaint on file erroneously ended the Class Period on June 29, 2019, but as discussed further below the Capital One class action lawsuit is premised on a computer hack that was in fact disclosed exactly one month later on July 29, 2019.

Class Period: February 2, 2018 - July 29, 2019 (see footnote 1)
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