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The Shuman Law Firm Investigates Conn's, Inc.
[January 16, 2015]

The Shuman Law Firm Investigates Conn's, Inc.


The Shuman Law Firm announces that it is investigating potential claims against certain officers and directors of Conn's, Inc. ("Conn's" or the "Company") (NASDAQ:CONN). Conn's is a Texas-based company that operates specialty retail stores which offer home appliances, furniture and consumer electronics on various installment credit programs.

The Firm's investigation relates to a federal lawsuit which alleges that Conn's senior management made false and/or misleading statements and/or failed to disclose to investor 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 foregoing, the Company's statements were materially false and misleading and/or lacked a reasonable basis at all relevant times.



On December 9, 2014, the Company reported a net loss for its fiscal 2015 third quarter, resulting primarily from significantly higher than expected losses in its credit segment. According to the Company, delinquency rates have increased, and provisions for bad debt for the three months ended October 31, 2014, was $72 million - an increase of $49.4 million from the same period in the prior year.

The Company further announced that its board of directors had established a Credit Risk Compliance Committee and that the Company's chief financial officer was leaving Conn's. Following this news, Conn's shares dropped more than 40%, or $14.26 per share, to close at $20.83 per share on December 9, 2014, on unusually heavy volume.


If you currently own Conn's common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip B. Shuman or Rusty E. Glenn toll-free at 866-569-4531 or email Mr. Shuman at [email protected] or email Mr. Glenn at [email protected].

The Shuman Law Firm represents investors throughout the nation, concentrating its practice in stockholder litigation.


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