Shareholder rights law firm Johnson & Weaver, LLP announced today that
it filed a class action lawsuit in the United States District Court for
the Southern District of Texas on behalf of purchasers of Conn's, Inc.
(NASDAQ: CONN) ("Conn's" or the "Company") publicly traded securities
between April 3, 2013 and February 19, 2014 (the "Class Period"). Conn's
is a specialty retailer.
This complaint alleges that Conn's and certain of its officers violated
the Securities Exchange Act of 1934. Specifically, the complaint alleges
that Conn's failed to disclose adverse facts regarding its business and
prospects, including the extent to which Conn's growth was attributable
to utilizing underwriting and collections practices that weakened its
portfolio quality. These practices, the complaint alleges, left the
Company susceptible to substantial increases in bad debt, and that
Conn's faced increased delinquency and charge off rates in its credit
segment. The complaint alleges that as a result of the defendants' false
statements, Conn's stock traded at artificially inflated levels
throughout the Class Period, reaching a high of $79.24 per share on
December 26, 2013.
On February 20, 2014, the Company issued a press release announcing
prelminary fourth quarter fiscal 2014 results and updating its fiscal
2015 earnings guidance. 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-plus days delinquent was 8.8% at January
31, 2014, an increase of 30 basis points from October 31, 2013." In the
press release, the Company also revealed that it was lowering its
recently issued fiscal 2015 earnings guidance. On this news, the price
of Conn's common stock fell $23.91 per share, or almost 43%, on
extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Conn's
publicly traded securities during the Class Period.
If you wish to serve as a lead plaintiff, you must move the Court no
later than May 5, 2014. If you wish to discuss this action, have any
questions concerning this notice, or your rights or interests, please
contact lead analyst Jim Baker (email@example.com)
at 619-230-0063 Ext.118. More information concerning this action is
also available at www.johnsonandweaver.com.
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.
Johnson & Weaver, LLP is a nationally recognized shareholders' rights
law firm with offices in New York, New York and San Diego, California.
The firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits. For more
information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.
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