Dave Inc. (DAVE) issued a statement on Tuesday in response to the Department of Justice's amended complaint, filed on behalf of the Federal Trade Commission, which includes CEO Jason Wilk as a defendant and seeks civil monetary penalties.
The neobank and fintech company described the amended complaint, filed in the U.S. District Court for the Central District of California, as an instance of governmental overreach, citing multiple allegations rooted in inaccuracies.
Dave Inc. has announced an updated mandatory fee structure, removing optional tips and express fees from its ExtraCash product, set to be fully implemented by early 2025.
The Federal Trade Commission initially brought the case against Dave in November, alleging the company engaged in misleading marketing practices, deceiving consumers regarding the amount of its cash advances, charging undisclosed fees, and imposing 'tips' without consumer consent.
In pre-market trading, Dave's stock is down 10.97%, reaching $84.10 on the Nasdaq.
