NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Aaron’s, Inc. (“Aaron” or the “Company”) (NYSE: AAN), and certain other defendants, related to alleged violations of federal securities laws. If you purchased Aaron’s securities between March 2, 2018 and February 19, 2020, inclusive, you are encouraged to contact Scott+Scott attorney Rhiana Swartz for additional information at (844) 818-6980 or email@example.com. The lead plaintiff deadline is April 28, 2020.
Aaron’s is a provider of lease-to-own solutions primarily to an underserved, credit-challenged segment of the population. Aaron’s conducts its business through three reportable segments—Progressive Leasing (“Progressive”), Aaron’s Business (“AB”), and Vive Financial, LLC (“Vive”). The Progressive and AB segments are subject to federal regulatory agency oversight and scrutiny, including the Federal Trade Commission (“FTC”).
The lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose: (1) that Aaron’s had inadequate disclosure controls, procedures, and compliance measures; (2) that, consequently, the operations of the 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 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.
On February 20, 2020, Aaron’s disclosed that its Progressive segment had reached an agreement in principle with the U.S. Federal Trade Commission (“FTC”) regarding a July 2018 civil investigative demand, which had sought to determine whether disclosures related to the Company’s financial products were in violation of the FTC Act. The proposed agreement required Aaron’s to “make a payment of $175 million and enhance certain compliance-related activities, including monitoring, disclosure, and reporting requirements.”
On this news, the Company’s share price fell $10.70 per share – over 19% – to close at $45.45 per share on February 20, 2020.
What You Can Do
If you purchased Aaron’s securities between March 2, 2018 and February 19, 2020, inclusive, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Rhiana Swartz at (844) 818-6980 or firstname.lastname@example.org.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.