Mark Cuban-backed Dave falls after US alleges deceptive practices

Dave

31/12/2024 15:09

** Shares of billionaire Mark Cuban-backed digital banking
firm Dave  DAVE.O  drop 9.3% to $85.68
    ** The U.S. Department of Justice on Monday filed a
complaint against DAVE and its CEO, Jason Wilk, for allegedly
deceptive practices
    ** Company advertised instant cash advances of up to $500
for their consumers, but charged "hidden" fees that they do not
clearly disclose - DoJ
    ** The company and its CEO "very rarely offer consumers
anywhere near the advertised $500" and "often do not offer any
cash advance at all", the watchdog says
    ** Many of the DoJ's claims were incorrect, Dave says,
adding that it will defend itself
    ** However, the company is rolling out a streamlined fee
structure it had unveiled earlier to remove some of the fees at
the center of the regulator's concerns
    ** Stock has jumped more than 11-fold YTD, as of last close

 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com))