Advanta Reports Fleet Filed Suit; Company Denies Allegations.SPRING HOUSE, Pa.--(BUSINESS WIRE)--Jan. 25, 1999--Advanta Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADVNA ADVNA Advanta Corporation (stock symbol) ; ADVNB; ADVNZ) today reported that late in the day on Friday, January 22, 1999, Fleet Financial Group, Inc. ("Fleet") filed a Complaint against the Company relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the consumer credit card transaction with Fleet which closed on February 20, 1998. The complaint centers around post-closing adjustments to the transaction, misconstrues the settlement process and contains groundless and duplicative allegations. Advanta believes that the lawsuit is inappropriate and without merit and will vigorously defend its position as to the proper amount of post-closing adjustments. The Company and its independent auditors worked in good faith to complete the settlement process which was agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy by both Fleet and Advanta in the closing agreements. Unfortunately, Fleet controlled the necessary information and failed to make it readily available to Advanta and its independent auditors to permit the timely completion of the settlement process. The Company is surprised and disappointed that Fleet has chosen to file this suit now rather than to follow the dispute resolution procedures required by the agreements and agreed to by Fleet. The Company does not expect this suit to have any impact on its business. The Company has conservatively reserved for post-closing adjustments. Advanta is confident that when this is resolved, not only will there be no adverse financial impact to the Company, there may be incremental value accruing to its benefit. Advanta is a highly focused financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company with 2,700 employees, over $12 billion in managed assets and approximately $8.3 billion in assets serviced for third parties. Advanta provides consumers and small businesses with innovative products and services including mortgages, equipment leases, business credit cards, insurance and deposit products. The Company also provides a full range of loan purchasing, contract servicing and securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. services to the mortgage industry. This Press Release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The most significant among these risks and uncertainties is the uncertainty of the legal process. Additional risks that may affect the Company's future performance are detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion