Report: American Express sued for misleading investors about Costco

New York -- American Express Co and Costco Wholesale Corp. are at it again.



A lawsuit has been filed accusing American Express of misleading investors about the loss of its contract with Costco after having failed to reveal how significant that business had become to the credit-card company, Reuters reported.



In the lawsuit, shareholder Plumbers and Steamfitters Local 137 Pension Fund sought class action status on behalf shareholders who suffered losses after the American Express in February announced the end of its co-branding agreement with Costco. Over the next two days, AmEx's stock plummeted, losing $8 per share to close at $77.53, according to the lawsuit. The decline wiped out close to $9 billion of market value, according to Reuters.



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