LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP filed a shareholder class action lawsuit on August 22, 2014, in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of EZCORP, Inc. (“EZCORP” or the “Company”) (NASDAQ:EZPW).
On October 6, 2014, EZCORP, a provider of instant cash solutions, announced that the Company will discontinue its stand-alone online lending businesses in the U.S. and U.K. and undertake certain other strategic measures that will result in aggregate pre-tax charges of approximately $110 million ($105 million after-tax) in the fourth quarter of fiscal 2014, approximately $95 million of which represent non-cash charges, including the write-off of approximately $84 million in goodwill associated with the Company's investment in the online lending businesses.
According to the Company, these actions “are a result of a comprehensive review and evaluation of each of the Company's businesses recently completed by the new management team and Board of Directors.” Following this news, EZCORP shares declined 10.7 percent, or $1.06 per share, in intraday trading on October 7, 2014.
The Complaint filed by Glancy Binkow & Goldberg LLP alleges that the Company and certain of its executive officers misrepresented or failed to disclose material information concerning EZCORP’s business, operations and financial prospects, including defendants' failure to disclose that the implementation of certain strategic and growth initiatives was less successful than represented, and certain of the Company's business units and investments were not performing as well as represented.
If you purchased EZCORP shares between April 30, 2013 and October 6, 2014, and suffered a loss, you may move the Court no later than October 21, 2014, to serve as lead plaintiff in this class action lawsuit, if you meet certain legal requirements. To be a member of the Class in this action, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150 or (888) 773-9224, by e-mail to email@example.com, or visit our website at http://www.glancylaw.com. If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
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