Comerica Misstated Fraud Response, Vendor Oversight, Suit Says

Comerica Inc. and its executives misled investors about its oversight of vendors and fraud prevention measures for a debit card program used to distribute federal benefits, a suit filed Monday says.

The shareholder who brought the suit alleges that Comerica worked with vendors in Lahore, Pakistan to handle daily operations of the Direct Express program, through which the company provides the benefits on prepaid debit cards to millions of Americans without bank accounts.

Comerica was allegedly noncompliant in allowing vendor i2c Inc. to handle its operations from the Lahore office, when the government contract required the company to conduct business ...