The trouble for Pathward began on July 22, 2026, when the firm disclosed that nonperforming loans ballooned to $275.1 million. This figure nearly tripled analyst estimates, with the company attributing the surge to problematic renewable-energy construction projects. Following the announcement, Pathward stock fell $5.55—a 6.26% decline—to close at $83.12 per share on July 23.

Pomerantz LLP, a firm specializing in securities class litigation, is now evaluating whether the company’s officers or directors misled shareholders regarding these financial health issues. Investors affected by the stock's performance are being directed to contact Danielle Peyton at the firm to discuss potential legal action.