Green Dot Leaders Allegedly Misled on Finances, Probe by Fed

Green Dot Corp. executives and directors misled the public about the strength of a key business segment and are responsible for costly legal compliance problems with the Federal Reserve Board, an investor alleges in a new suit.

The financial technology company’s founder and former CEO, Steven Streit, and its former chief financial officer, Mark Shifke, sold $62 million worth of stock while the share price was improperly inflated, Dino DiBlasio says in a shareholder derivative suit. He filed his complaint Monday in the US District Court for the Central District of California.

The company’s prepaid debit card business for customers ...