NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Aaron’s, Inc. (“Aaron’s” or the “Company”) (NYSE:AAN) of the April 28, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Aaron’s stock or options between March 2, 2018 and February 19, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/AAN. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Aaron’s securities between March 2, 2018 and February 19, 2020 (the “Class Period”). The case, Stein v. Aarons, Inc. et al., No. 20-cv-01796 was filed on February 28, 2020 and has been assigned to Judge Louis L. Stanton.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose: (1) that Aaron’s had inadequate disclosure controls, procedures, and compliance measures; (2) that, consequently, the operations of Aaron’s Progressive and AB segments were in violation of the FTC Act and/or relevant FTC regulations; (3) that, consequently, Aaron’s earnings from those segments were partially derived from unlawful business practices and were thus unsustainable; (4) the full extent of Aaron’s liability regarding the FTC’s investigation into its Progressive and AB segments, Aaron’s noncompliance with the FTC Act, and the likely negative consequences of all the foregoing on the Company’s financial results; and (5) that, as a result, the Company’s public statements were materially false and misleading at all relevant times.
Specifically, on July 26, 2018, during after-market hours, Aaron’s filed a Quarterly Report on Form 10-Q with the Securities and Exchange Commission, reporting the Company’s financial and operating results for the fiscal quarter ended June 30, 2018. That Quarterly Report disclosed that, in July 2018, Aaron’s 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 the Company through its AB and Progressive segments were in violation of the FTC Act.
On this news, Aaron’s stock fell from a closing price of $48.85 per share on July 26, 2018 to $43.47 on July 27, 2018—a $5.38 or 11.01% drop.
Then, on February 20, 2020, Aaron’s issued a press release announcing the Company’s financial results for the quarter and year ended December 31, 2019. Among other results, Aaron’s reported that the Company’s Progressive segment had reached an agreement in principle with FTC staff regarding the CID from the FTC that Progressive received in July 2018. Aaron’s advised investors that “[u]nder the proposed agreement, which requires final approval by FTC Commissioners and the U.S. District Court for the Northern District of Georgia, Progressive will make a payment of $175 million and enhance certain compliance-related activities, including monitoring, disclosure and reporting requirements.”
On this news, Aaron’s stock fell from a closing price of $56.15 per share on February 19, 2020 to $45.45 on February 20, 2020—a $10.70 or 19.06% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Aaron’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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