A lawsuit was filed by a current investor in shares of CONN’S, Inc. (NASDAQ:CONN) over alleged breaches of fiduciary duties and current long-term NASDAQ:CONN stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 01/28/2015 -- A current investor in NASDAQ:CONN shares filed a lawsuit against directors of CONN'S, Inc. over alleged breaches of fiduciary duties that caused damages to the company and NASDAQ:CONN stockholders.
Investors who purchased shares of CONN'S, Inc. (NASDAQ:CONN) in 2013 or earlier and currently hold any of those NASDAQ:CONN shares, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The plaintiff claims that the defendants were aware that Conn's, Inc. lowered its underwriting standards and was offering lines of credit to unqualified customers and that while Conn's stock was trading at what the lawsuit calls artificially inflated prices five of the defendants sold more than 1.3 million shares for more $66 million, allegedly using non-public information.
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.
In March 2014 a lawsuit was filed against Conn's over alleged Securities laws Volitions between April 3, 2013 and February 19, 2014. The plaintiff in that lawsuit claims that defendants issued between April 3, 2013 and February 19, 2014 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.
On December 9, 2014 Conn's, Inc. reported its third quarter fiscal 2015 financial results. Conn's reported that its third quarter Revenue rose from $310.87 million in 2013 to $370.05 million in 2014 and that its third quarter Net Income of $24.37 million in 2013 declined to a third quarter Net Loss of $3.06 million in 2014. Conn's also announced the resignation of its CFO Brian Taylor. Additionally, Conn's withdrew its earnings guidance for fiscal 2015 and did not provide earnings guidance with respect to fiscal 2016. Conn's also said that it recognized that its credit operations forecasting has not been acceptably accurate. Shares of CONN'S, Inc. (NASDAQ:CONN) dropped from $36.00 per share on December 8, 2014 to as low as $19.57 per share on December 9, 2014 and continued to decline to as low as $15.30 per share on December 12, 2014.
On December 12, 2014, another lawsuit was filed against Conn's Inc over alleged Securities Laws Violations between September 2, 2014 and December 9, 2014. The plaintiff in that lawsuit claims that the true state of its deteriorated credit portfolio was revealed on December 9, 2014, when the Conn's withdrew its financial guidance and admitted that its prior financial guidance was not "acceptably accurate.
Shares of CONN'S, Inc. (NASDAQ:CONN) declined from over $77 per share in January 2014 to as low as $14.02 per share on December 16, 2014.
On January 9, 2015, NASDAQ:CONN shares closed at $18.06 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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