San Diego, CA -- (SBWIRE) -- 04/23/2014 -- An investor, who purchased shares of CONN'S, Inc. (NASDAQ:CONN), filed a lawsuit in the U.S. District Court for the Southern District of Texas over alleged violations of Federal Securities Laws by CONN'S, Inc. in connection with certain allegedly false and misleading statements made between April 3, 2013 and February 19, 2014.
If you purchased shares of CONN'S, Inc. (NASDAQ:CONN), you have certain options and for certain investors are short and strict deadlines running. Deadline: May 5, 2014. NASDAQ:CONN investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of CONN'S, Inc. (NASDAQ:CONN) between April 3, 2013 and February 19, 2014, that CONN'S, Inc. and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that defendants between April 3, 2013 and February 19, 2014 issued allegedly false and misleading statements or allegedly failed to disclose adverse facts regarding Conn’s business and prospects, including the extent to which Conn’s growth was attributable to utilizing underwriting and collections practices that weakened its portfolio quality and left it susceptible to substantial increases in bad debt, and that Conn’s faced increased delinquency and charge off rates in its credit segment, and that as a result of the defendants’ statements, Conn’s stock traded at artificially inflated levels between April 3, 2013 and February 19, 2014, reaching a high of $79.24 per share on December 26, 2013.
CONN'S, Inc. reported that its Total Revenue rose from $792.30 million for the 12 months period that ended on January 31, 2012 to $865.03 million for the 12 months period that ended on January 31, 2013 and that its Net Loss of $3.72 million for the 12 months period that ended on January 31, 2012 turned into a Net Income of $52.61 million for the 12 months period that ended on January 31, 2013.
Shares of CONN'S, Inc. grew from $4.29 per share in early 2011 to as high as $79.24 per share last December 2013.
Then on February 20, 2014, CONN'S, Inc. announced its preliminary fourth quarter fiscal 2014 results and updated its fiscal earnings guidance. CONN'S, Inc. announced 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.” CONN'S, Inc. announced also revealed that it was lowering its recently issued fiscal 2015 earnings guidance. Shares of CONN'S, Inc. declined from $79.24 per share in December 2013 to as low as $31.89 per share on February 20, 2014.
On April 21, 2014, NASDAQ:CONN shares closed at $45.71 per share.
Those who purchased shares of CONN'S, Inc. (NASDAQ:CONN) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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