The scrutiny follows Pathward’s July 22, 2026, fiscal third-quarter disclosure, which revealed nonperforming loans ballooned to $275.1 million. This figure tripled analyst projections, with the company attributing the losses largely to troubled renewable-energy construction loans. Investors reacted immediately to the instability; Pathward shares dropped $5.55—a 6.26% decline—to close at $83.12 on July 23.

Pomerantz LLP is now reviewing potential securities fraud or breaches of fiduciary duty by company officers and directors. The firm, a veteran in securities class action litigation, is urging affected investors to contact representative Danielle Peyton as they assess the viability of a class action suit.