Wednesday July 30, 2014

American Express chairman, board sued for card practices

Investor Bob Lankford sued American Express Chair Kenneth Chenault and the company’s board following a settlement of claims that it violated consumer safeguards.

On Wednesday, investor Bob Lankford sued American Express Co. Chairman Kenneth Chenault and company directors “over practices that led to a $112.5 million settlement of claims that it violated consumer safeguards,” reports Bloomberg. In addition to unspecified damages, Lankford has petitioned for a court order telling the company “to take all necessary actions to reform and improve its corporate governance and internal procedures to comply with applicable laws and to protect the company and its shareholders from a repeat of the damaging events.” According to his complaint, AmEx’s “illicit card practices” over the past nine years have ranged from charging illegal late fees to discriminating against new applicants based on their age.

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