|[March 06, 2014]
Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Conn's, Inc.
WILMINGTON, Del. --(Business Wire)--
Rigrodsky & Long, P.A.:
Do you, or did you, own shares of Conn's, Inc. (NASDAQ GS: CONN)?
Did you purchase your shares before April 3, 2013, or between April
3, 2013 and February 19, 2014, inclusive?
Did you lose money in your investment in Conn's, Inc.?
Do you want to discuss your rights?
& Long, P.A., including former Special Assistant United States
Attorney, Timothy J. MacFall, announces that a complaint has been filed
in the United States District Court for the Southern District of Texas
on behalf of all persons or entities that purchased the common stock of
Conn's, Inc. ("Conn's" or the "Company") (NASDAQ GS: CONN)
between April 3, 2013 and February 19, 2014, inclusive (the "Class
Period"), alleging violations of the Securities Exchange Act of 1934
against the Company and certain of its officers (the "Complaint").
If you purchased shares of Conn's during the Class Period, or purchased
shares prior to the Class Period and still hold Conn's, and wish to
discuss this action or have any questions concerning this notice or your
rights or interests, please contact Timothy
J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2
Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by
e-mail to firstname.lastname@example.org; or
Conn's is a leading specialty retailer that offers a broad selection of
high-quality, branded durable consumer goods and related services in
addition to a proprietary credit solution for its core credit
constrained consumers. The Complaint alleges that throughout the Class
Period, defendants made materially false and misleading statements, and
omitted materially adverse facts, about the Company's business,
operations and prospects. Specifically, the Complaint alleges that the
defendants concealed from the investing public that: (i) Conn's was
growing its business and financial results by utilizing underwriting and
collections practices that, despite Defendants' statements to the
contrary, weakened its portfolio quality and left it susceptible to
substantial increases in bad debt; (ii) Conn's faced increased
delinquency and charge off rates in its credit segment; (iii) at all
relevant times, Conn's financial performance was substantially and
materially threatened due to the Company's practice in its credit
segment; and (iv) as a result of the foregoing, Defendants' statements
regarding the Company's financial performance and expected earnings in
2014 and 2015 were materially false and misleading and lacked a
reasonable basis when made. As a result of defendants' false and
misleading statements, the Company's stock traded at artificially
inflated prices during the Class Period.
According to the Complaint, on February 20, 2014, the Company issued a
press release announcing preliminary fourth quarter fiscal 2014 results
and updated its fiscal 2015 earnings guidance. Among other things, the
press release revealed that the Company's "[c]redit segment provision
for bad debts as a percentage of the average outstanding portfolio
balance is expected to exceed previously issued full-year fiscal 2014
guidance" and that the "percentage of the customer portfolio balance
60-days plus delinquent was 8.8% at January 31, 2014, an increase of 30
basis points from October 31, 2013". Additionally, the Company revealed
that it was lowering its recently issued fiscal 2015 earnings guidance
to $3.40 per diluted share - down from $3.70 per diluted share.
On this news, shares in Conn's plummeted almost 43%, closing at $31.89
per share on February 20, 2014, on heavy trading volume of over 25
If you wish to serve as lead plaintiff, you must move the Court no later
than May 5, 2014. A lead plaintiff is a representative party
acting on behalf of other class members in directing the litigation. In
order to be appointed lead plaintiff, the Court must determine that the
class member's claim is typical of the claims of other class members,
and that the class member will adequately represent the class. Your
ability to share in any recovery is not, however, affected by the
decision whether or not to serve as a lead plaintiff. Any member of the
proposed 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.
& Long, P.A. did not file the Complaint in this matter, the
firm, with offices in Wilmington, Delaware and Garden City, New York, regularly
litigates securities class, derivative and direct actions, shareholder
rights litigation and corporate governance litigation, including
claims for breach of fiduciary duty and proxy violations in the Delaware
Court of Chancery and in state and federal courts throughout the United
Attorney advertising. Prior results do not guarantee a similar outcome.
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