SAN DIEGO & ATLANTA--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Aaron's, Inc. (NYSE: AAN) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between March 2, 2018 and February 19, 2020. Aaron's operates an omnichannel provider of lease-purchase solutions and engages in the sale, lease ownership, and specialty retailing of various products.
If you suffered a loss as a result of Aaron's' misconduct, click here.
Aaron's, Inc. (AAN) Accused of Misleading Shareholders
According to the complaint, on July 26, 2018, Aaron's revealed it had received civil investigative demands ("CIDs") from the Federal Trade Commission ("FTC") requesting the production of documents and answers to written questions to determine whether disclosures related to financial products offered by its AB and progressive segments were in violation of the FTC Act. Then, in April 2019, Aaron's AB segments received a CID from the FTC to determine if certain customer lease agreement transactions violated the FTC Act. However, on both occasions Aaron's assured investors it "believe[ed] [it's] in compliance with the FTC Act." Despite its assurances, on February 20, 2020, Aaron's announced that as a result of the CID from the FTC, Aaron's' progressive segment will make a payment of $175 million to enhance compliance-related activities, including disclosure and reporting requirements. On this news, the stock price fell $10.70, or 19% to close at $45.45 per share. The stock continues to decline.
Aaron's, Inc. (AAN) Shareholders Have Legal Options
Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar outcome.