Press release from PR Newswire
FRANK & BIANCO LLP Announces Investigation of Conn's, Inc.
Friday, March 14, 2014
FRANK & BIANCO LLP Announces Investigation of Conn's, Inc.15:16 EDT Friday, March 14, 2014
NEW YORK, March 14, 2014 /PRNewswire/ -- FRANK & BIANCO LLP is investigating securities fraud claims against Conn's, Inc. ("Conn's" or the "Company") (NASDAQ: CONN) and certain of its officers, on behalf of purchasers of Conn's securities between April 3, 2013 and February 19, 2014, inclusive (the "Class Period").
The investigation concerns violations of the federal securities laws that occurred when the Company and certain of its officers issued materially false and misleading statements or omitted to state material information during the Class Period regarding Conn's financial performance and prospects. Specifically, these misstatements and omissions related to poor underwriting and collection practices that increased the Company's risk of bad debt, and increasing customer delinquencies and charge-off rates in its credit segment, among other things. As a result of these misstatements and omissions, Conn's securities traded at artificially inflated prices throughout the Class Period.
On February 20, 2014, the Company issued a press release announcing its preliminary results for the quarter ended January 31, 2014, and updating its earnings guidance for fiscal 2015. The press release revealed that (1) Conn'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,"; (2) 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"; and (3) the Company was lowering its earnings guidance for fiscal 2015. On this news, the Company's stock price dropped $23.91 per share, or almost 43%, on heavy trading volume.
If you purchased Conn's securities within the Class Period, and you wish to discuss this investigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
Contact:FRANK & BIANCO LLP Bridget Hamill212-682-1818800-497-8076Investigations@frankandbianco.comwww.frankandbianco.com
SOURCE FRANK & BIANCO LLP