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TMCNet:  Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Conn's, Inc.

[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?

Rigrodsky & 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 info@rl-legal.com; or at: http://www.rigrodskylong.com/investigations/conns-inc-conn.


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 million shares.

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.

While Rigrodsky & 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 States.

Attorney advertising. Prior results do not guarantee a similar outcome.


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