Dave Responds To Amended FTC Complaint, Stock Down In Pre-Market

(RTTNews) - Dave Inc. (DAVE), Tuesday issued a response to an amended complaint filed by the Department of Justice, on behalf of the Federal Trade Commission, naming the company's CEO Jason Wilk as a defendant and seeking civil money penalties.

The neobank and fintech firm claimed that the amended complaint, filed in the U.S. District Court for the Central District of California, "is a continued example of government overreach, comprising of numerous allegations that are based on various inaccuracies."

The company provided an updated mandatory fee structure, which eliminates optional tips and express fees for its ExtraCash product. The new structure will be fully implemented in early 2025.

The case against Dave by the Federal Trade Commission was first brought in November, charging that the company uses misleading marketing to deceive consumers about the amount of its cash advances, charges consumers undisclosed fees, and charges so-called 'tips' to consumers without their consent.

During the pre-market hours, Dave's stock is falling 10.97 percent, to $84.10 on the Nasdaq.