NEW YORK, Dec. 22, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Ally Financial Inc. ("Ally" or the "Company") (NYSE: ALLY) and certain of its officers, and is on behalf of purchasers of Ally securities pursuant and/or traceable to the company's April 11, 2014 Initial Public Offering ("IPO"). Such investors are advised to join this case by visiting the firm's site: http://www.bgandg.com/ally.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
Ally Financial Inc., previously known as GMAC Inc. is an American bank holding company that provides financial products and services mainly to automotive dealers and their retail customers.
In June of 2016, several news sources reported that car loans should be considered high risk for auto lenders because of the problematic default rates from increased subprime lending. As a response to this alarming report, Ally stated its intent to begin "dialing back on lending to consumers at the lower end of the subprime credit score spectrum." Following this news, Ally stock dropped over 22% per share on June 14, 2016. Then on July 28, 2016, The Wall Street Journal revealed that Ally, along with some of the largest auto lenders, had reported on second quarter earnings calls that used car prices are at risk of dropping.
The Complaint alleges that throughout the Class Period, Ally made false and/or misleading statements and/or failed to disclose: (1) the severity of growing subprime auto loan delinquency rates; (2) deficient underwriting measures employed in the origination of its subprime auto loans; and (3) the aggressive tactics that were used with low-income debtors to raise about $2.375 billion in its April 2014 IPO.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/ally or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Ally you can request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | email@example.com
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