1. American Express to pay $108.7 million to settle deceptive marketing allegations. 2. Settlement might influence investor confidence negatively due to reputational risk.
The substantial settlement amount raises concerns about AXP's marketing practices, which can deter investors, similar to past cases involving large settlements that negatively impacted stock prices.
The settlement is significant, affecting American Express's financial standing and reputation, thus it has a notable but not overwhelming potential impact on AXP's stock price.
Immediate investor reactions may occur, leading to a short-term price dip as seen in similar settlements, but long-term effects depend on the company's handling of the situation.