|[March 19, 2014]
Lieff Cabraser Announces Class Action Litigation Against Conn's, Inc. - CONN
SAN FRANCISCO --(Business Wire)--
The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class
action litigation has been brought on behalf of those who purchased the
common stock and/or call options or sold/wrote the put options of
Conn's, Inc. ("Conn's" or the "Company") (NasdaqGS: CONN), between
April 3, 2013 and February 19, 2014, inclusive (the "Class Period").
If you purchased the common stock and/or call options or sold/wrote the
put options of Conn's during the Class Period, you may move the Court
for appointment as lead plaintiff by no later than May 5, 2014. A lead
plaintiff is a representative party who acts on behalf of other class
members in directing the litigation. Your share of any recovery in the
action will not be affected by your decision of whether to seek
appointment as lead plaintiff. You may retain Lieff Cabraser, or other
attorneys, as your counsel in the action.
investors who wish to learn more about the action and how to seek
appointmnt as lead plaintiff should click here or contact Sharon M.
Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Conn's Securities Class
The actions charge Conn's and certain of its officers and directors with
violations of the Securities and Exchange Act of 1934. Conn's, based in
The Woodlands, Texas, is a specialty retailer of home appliances,
furniture, mattresses, and consumer electronics, and a provider of
The actions allege that during the Class Period, defendants issued false
and misleading statements or failed to disclose material adverse facts
regarding Conn's business and prospects. Specifically, defendants
allegedly misrepresented and failed to disclose that (1) the Company was
increasing its business and financial results by using underwriting and
collections practices that weakened Conn's portfolio quality and left it
vulnerable to substantial increases in bad debt; (2) Conn's was
experiencing rising delinquencies at a substantially different rate than
it was representing to public; and (3) Conn's credit segment practices
substantially threatened the Company's financial performance.
On September 5, 2013 Conn's disclosed that the performance of its credit
segment for the second quarter of fiscal 2014 was below expectations due
to execution issues in its collection operations. The Company stated
that after corrective actions were taken, negative delinquency trends
rapidly reversed. On this news, Conn's stock price fell $7.95 per share,
or nearly 12%, to close at $60.36 per share on September 5, 2013.
On February 20, 2014, Conn's issued a press release announcing its
preliminary fourth quarter of fiscal 2014 results. Conn's disclosed that
its "[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." The
Company also reduced its fiscal 2015 earnings guidance. On this news,
the price of Conn's common stock fell $23.91 per share, or 42.85%, from
its closing price of $55.80 per share on February 19, 2014 to close at
$31.89 on February 20, 2014, on exceptionally heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco,
New York, and Nashville, is a nationally recognized law firm committed
to advancing the rights of investors and promoting corporate
The National Law Journal has selected Lieff Cabraser as one of
the top plaintiffs' law firms in the nation for eleven years. In
compiling the list, the National Law Journal examined recent
verdicts and settlements in addition to overall track records. Lieff
Cabraser is one of only two plaintiffs' law firms in the United States
to receive this honor for the last eleven consecutive years.
For more information about Lieff Cabraser and the firm's representation
of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
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