In response to an amended complaint filed by the Department of Justice on behalf of the Federal Trade Commission, Dave Inc. has issued a statement defending itself against the allegations. The amended complaint, filed on December 30, 2024, is part of an ongoing lawsuit, with the company asserting that the allegations have not changed in substance. Dave Inc. has emphasized its commitment to compliance and consumer transparency and intends to vigorously defend itself against the amended complaint.
Furthermore, the company has introduced a new fee structure for its extracash product, eliminating optional tips and express fees. This move is a part of the company's evolution of its business model and has received positive customer feedback. The transition of existing members to the new fee structure is underway, and based on initial results, the company anticipates enhancing member lifetime value. The full implementation of the new fee structure is expected to be completed in early 2025.
Dave Inc.'s outlook remains positive, and it is set to share more comprehensive updates and results during its fourth-quarter earnings call in early March. As a leading U.S. neobank and fintech pioneer, the company serves millions of everyday Americans, providing best-in-class banking services at a fraction of the price of traditional incumbents. Dave partners with Evolve Bank & Trust, a member of the FDIC.
As of December 4, 2024, all new Dave members have been onboarded onto the new fee structure, and the company is actively transitioning existing members to the new model. The company expects to complete the transition for all existing members by early 2025. As a result of these announcements, the company's shares have moved -12.0% on the market, and are now trading at a price of $83.15. For more information, read the company's full 8-K submission here.
