Press release from PR Newswire
SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of World Acceptance Corporation - WRLD
Wednesday, March 26, 2014
SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of World Acceptance Corporation - WRLD11:25 EDT Wednesday, March 26, 2014
NEW YORK, March 26, 2014 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of World Acceptance Corporation ("World Acceptance" or the "Company") (NasdaqGS: WRLD) (CUSIP: 981419104). Investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 237.
The investigation concerns whether World Acceptance and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On July 3, 2013, World Acceptance issued a press release stating that it hasn't been able to complete its latest annual report for fiscal year ended March 31, because of problems related to its allowance loan losses. The Company said, it has encountered unexpected delays related to additional reviews and analysis that are needed to support its allowance for loan losses, or the funds set aside to cover loans that go unpaid. World Acceptance said it may report a material weakness in its internal control over financial reporting related to the allowance for loan losses.
On this news, World Acceptance shares fell $10.51 over 11%, to close at $78.20 per share on July 5, 2013.
On March 13, 2014, the Company announced in a Securities and Exchange Commission ("SEC") Form 8-K filing that the Consumer Financial Protection Bureau ("CFPB") issued a Civil Investigation Demand ("CID") to the company on March 12, 2014. According to World Acceptance, the CFPB investigation is to determine "whether finance companies or other unnamed persons have been or are engaging in unlawful acts or practices in connection with the marketing, offering, or extension of credit" in violation of certain sections of the Consumer Financial Protection Act, the Truth in Lending Act, and other Federal consumer financial laws.
On this news, shares of World Acceptance fell from $97.32 to $78.25, more than 19.59%, on unusually heavy trading volume, on March 13, 2014.
The Pomerantz Firm, with offices in New York, Chicago, San Diego, and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:Robert S. WilloughbyPomerantz LLPrswilloughby@pomlaw.com
SOURCE Pomerantz LLP