Kirby McInerney LLP announced an investigation into Pathward Financial over potential securities fraud. The investigation follows Pathward's July 22, 2026, fiscal third-quarter report, which included a provision for credit losses of $28.3 million, up from $9.3 million a year earlier, and a disclosure that nonperforming loans rose to $277.5 million from $119.8 million the prior quarter. CEO Brett Pharr attributed the increased provision partly to a working capital loan involving a sophisticated fraud, and the company lowered its fiscal 2026 earnings per share guidance to a range of $7.80 to $8.20 from the previous $8.55 to $9.05. On this news, Pathward's stock fell $5.55 per share, or about 6.26%, to close at $83.12 on July 23, 2026. No lawsuit has been filed, and the investigation is ongoing.
Meta Financial Group IncPathward Financial (parent of Meta Financial Group) faces securities fraud investigation after reporting higher credit losses and lowered guidance, causing stock drop.