Credit Card Co. Investors Strike $11M Cash Deal Over IPO
Law360 (January 2, 2019, 4:33 PM EST) -- CPI Card Group Inc. investors will receive $11 million in cash, according to a settlement proposed in New York federal court Monday, ending their claims that the payment technologies company oversold its chip-enabled financial card product ahead of its $172.5 million initial public offering.
The shareholders, led by investor Alex Stewart, said the deal would recover a "significant" amount of the estimated maximum damages at 11.6 percent, according to the memorandum. They also put forth an allocation plan to distribute the funds and a bid to certify the settlement class.
"It is respectfully submitted that this recovery is a very favorable...
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