NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Conn's, Inc. (NasdaqGS: CONN).
Throughout 2012 to 2013, Conn’s began implementing a plan to inflate sales by loosening its credit underwriting and lending standards, thus exposing the Company to a considerable amount of high-risk consumer debt despite making contrary statements to investors that it was strengthening its credit and collection practices. The Company gradually revealed throughout the latter part of 2013 to 2014 that earnings were lower than anticipated, while making assurances that the problems were resolved. On December 9, 2014, the truth was revealed as the Company announced significant increases in bad debt and consumer delinquency rates, that it was withdrawing its earnings guidance for 2015 and that it was not providing earnings guidance for 2016 at that time.
Thereafter, Conn’s and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. On May 5, 2016, the Court denied a motion to dismiss the case and it continues to move forward to the present.
KSF’s investigation is focusing on whether the Company’s officers and/or directors breached their fiduciary duties to Conn’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-time holder of Conn’s shares, and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org).
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.