SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP announced today that it filed a class action lawsuit in the United States District Court for the Southern District of Texas on behalf of purchasers of Conn’s, Inc. (NASDAQ: CONN) (“Conn’s” or the “Company”) publicly traded securities between April 3, 2013 and February 19, 2014 (the “Class Period”). Conn’s is a specialty retailer.
This complaint alleges that Conn’s and certain of its officers violated the Securities Exchange Act of 1934. Specifically, the complaint alleges that Conn’s failed to disclose adverse facts regarding its business and prospects, including the extent to which Conn’s growth was attributable to utilizing underwriting and collections practices that weakened its portfolio quality. These practices, the complaint alleges, left the Company susceptible to substantial increases in bad debt, and that Conn’s faced increased delinquency and charge off rates in its credit segment. The complaint alleges that as a result of the defendants’ false statements, Conn’s stock traded at artificially inflated levels throughout the Class Period, reaching a high of $79.24 per share on December 26, 2013.
On February 20, 2014, the Company issued a press release announcing preliminary fourth quarter fiscal 2014 results and updating its fiscal 2015 earnings guidance. The press release revealed that the Company’s “[c]redit segment provision for bad debts as a percentage of the average outstanding portfolio balance is expected to exceed previously issued full-year fiscal 2014 guidance,” and that the “percentage of the customer portfolio balance 60-plus days delinquent was 8.8% at January 31, 2014, an increase of 30 basis points from October 31, 2013.” In the press release, the Company also revealed that it was lowering its recently issued fiscal 2015 earnings guidance. On this news, the price of Conn’s common stock fell $23.91 per share, or almost 43%, on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Conn’s publicly traded securities during the Class Period.
If you wish to serve as a lead plaintiff, you must move the Court no later than May 5, 2014. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-230-0063 Ext.118. More information concerning this action is also available at www.johnsonandweaver.com. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm with offices in New York, New York and San Diego, California. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.