Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Conn’s, Inc.
Oklahoma City, OK (December 29, 2014) – On December 12, 2014, a securities class action lawsuit was filed in the United States District Court for the Southern District of Texas against Conn’s, Inc. (NASDAQ: CONN). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is September 2, 2014 through December 9, 2014. More specifically, this litigation was filed because the Company failed to disclose that the Company was growing its business and financial results by utilizing underwriting and collection practices that weakened its portfolio quality and left it susceptible to substantial increases in bad debt.
On December 9, 2014, the Company withdrew its earnings forecast for its fiscal 2015, resulting primarily from significantly higher than expected losses in its credit segment.
The Company further announced that its board of directors established a Credit Risk Compliance Committee and that the Company’s chief financial officer Brian Taylor was leaving the Company.
Following this news, the Company’s shares declined to close at $20.83 per share on December 9, 2014.
Plaintiff seeks to recover damages on behalf of all Conn’s, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, February 10, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to email@example.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Mon, December 29, 2014
by Robin Hester