New User:

Forgot your password?

Stock Market & Financial Investment News

News Breaks
May 13, 2014
15:29 EDTONEHigher One shares dive after disclosing potential Fed penalty
Shares of college campus debit card provider Higher One Holdings (ONE) are falling after disclosing that the Federal Reserve is seeking an administrative order against the company. WHAT'S NEW: In a regulatory filing last night, the company disclosed it is facing penalties from the Federal Reserve over asserted violations of the Federal Trade Commission Act relating to marketing and disclosure practices related to the OneAccount option for financial aid refund. WHAT'S NOTABLE: The company noted in the filing that the penalties it faces has the potential to trigger a default on its credit facility. "Although the ultimate amount of restitution or civil money penalties are subject to many uncertainties and therefore are impossible to predict, it is possible the amounts could reach levels that would cause an event of default under our credit facility. While we believe that it is probable that we will have a loss related to this regulatory matter, in view of the inherent difficulty of predicting the outcome of regulatory matters, we cannot predict what the eventual outcome of this pending matter will be, what the timing of the ultimate resolution of this matter will be or the potential range of loss associated with this matter. We are currently unable to estimate a range of loss associated with this matter because it is in an early stage." PRICE ACTION: Shares of Higher One are lower by over 14% to $5.51 in late afternoon trading.
News For ONE From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
There are no results for ONE

Sign up for a free trial to see the rest of the stories you've been missing.
I agree to the disclaimer & terms of use