Press release from PR Newswire
The Law Offices of Marc S. Henzel Announces Class Action Lawsuit against Conn's Inc. (Nasdaq: CONN) and Certain Officers -- Conn's Inc. (Nasdaq: CONN) was filed on behalf of stockholders.
Wednesday, March 12, 2014
The Law Offices of Marc S. Henzel Announces Class Action Lawsuit against Conn's Inc. (Nasdaq: CONN) and Certain Officers -- Conn's Inc. (Nasdaq: CONN) was filed on behalf of stockholders.08:55 EDT Wednesday, March 12, 2014
MERION, Pa., March 12, 2014 /PRNewswire/ -- The Law Offices of Marc S. Henzel announces that a class action lawsuit was filed against Conn's Inc. (Nasdaq: CONN) ("CONN" or the "Company") and certain of its officers in United States District Court for the Southern District of Texas on behalf of a class (the "Class") comprising all persons or entities who purchased or otherwise acquired Conn's common stock and/or call options, or sold/wrote Conn's put options between April 3, 2013 and February 19, 2014, inclusive (the "Class Period").
If you are a shareholder who purchased CONN securities during the Class Period, you have until May 5, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. To discuss the action, please contact Marc S. Henzel (610) 660-8000, Mhenzel@Henzellaw.com, or to sign up online, visit the firms website at www.henzellaw.com
The Complaint alleges that throughout the Class Period defendants misrepresented or failed to disclose that: (1) the Company was increasing its business and financial results by using underwriting and collections practices that, despite defendants' statements to the contrary, weakened the Company's portfolio quality and left it vulnerable to substantial increases in bad debt; (2) the Company was experiencing rising delinquencies at a substantially different rate than it was representing; (3) the Company's credit segment practices substantially threatened the Company's financial performance; and (4), as a result of the above, the Company's statements were materially false and misleading at all relevant times or lacked a reasonable basis.
On February 20, 2014, Conn's announced that its credit segment provision for bad debts as a percentage of the average outstanding portfolio balance was expected to exceed previously issued full-year fiscal 2014 guidance, and that the percentage of its customer portfolio balance 60-plus days delinquent at January 31, 2014 was 8.8% ? an increase of 30 basis points from October 31, 2013. As a result of this news, the price of Conn's shares declined $23.91 per share, or nearly 43%, to close at $31.89 per share on February 20, 2014, on unusually heavy volume.
Contact:Law Offices of Marc S. HenzelMarc S. HenzelEmail: Mhenzel@Henzellaw.com Phone 610-660-8000Website: www.henzellaw.com
SOURCE Law Offices of Marc S. Henzel