Comerica Incorporated (NYSE:CMA), a Dallas-based financial services company, has been hit with a class action lawsuit in the U.S. District Court for the Central District of California. The suit was launched by Kirby (NYSE:KEX) McInerney LLP, a New York-based plaintiffs' law firm that has a track record of recovering billions of dollars for its clients. The lawsuit is on behalf of investors who bought securities from February 9, 2021, to May 29, 2023. Investors interested in applying as lead plaintiff have until October 20, 2023, to submit their applications.
The lawsuit alleges that Comerica made misleading statements and undisclosed violations of the Federal Contract and Regulation E related to the Direct Express program. The Direct Express program was managed by i2c Inc. and Conduent (NASDAQ:CNDT) Inc., vendors working with Comerica.
This lawsuit comes on the heels of an exposé published by American Banker that revealed serious violations by Comerica and its vendors i2c Inc. and Conduent Inc ., within the Direct Express program. Following the publication of the exposé, Comerica's share price experienced a significant decline, falling by $1.40 per share.
Despite these challenges, Comerica has shown some promising signs. According to InvestingPro data, the company's revenue growth has been accelerating, with a quarterly growth of 8.79% in fiscal year 2023 Q2. The company's market cap stands at 5180M USD, and it boasts a P/E ratio of 4.06, suggesting that it's trading at a low earnings multiple. Comerica also pays a significant dividend to its shareholders, with a yield of 7.17%.
InvestingPro Tips also highlight that Comerica has maintained dividend payments for 53 consecutive years, a testament to its commitment to shareholder returns. However, investors should note that the stock has fared poorly over the last month, with a one month price total return of -17.34%.
For more insights into Comerica's financial performance and investment tips, you can visit InvestingPro. There, you will find dozens of additional tips and real-time metrics that can help you make informed investment decisions.
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