MoneyLion, which Gen Digital Inc. is in the process of acquiring, is facing a lawsuit from New York Attorney General Letitia James. The lawsuit alleges that MoneyLion and DailyPay, another Earned Wage Access (EWA) provider, charged illegal, high-interest loans.
This regulatory action could have wide-ranging implications for EWA providers and introduces a material risk for MoneyLion's business operations and financial standing. The outcome of such litigation could impact the strategic value and integration of MoneyLion into Gen Digital's portfolio.
The lawsuit highlights potential regulatory scrutiny within the consumer finance industry, a sector Gen Digital is expanding into with the MoneyLion acquisition. This development adds a layer of uncertainty to the anticipated benefits of the merger.
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