San Diego, CA -- (SBWIRE) -- 02/14/2012 -- The Shareholders Foundation announces that certain directors and officers of Encore Capital Group, Inc. are under the investigation on behalf of investors in shares of Encore Capital Group, Inc. (NASDAQ: ECPG) over possible Breaches of Fiduciary Duties.
Investors who purchased shares of Encore Capital Group, Inc. (NASDAQ:ECPG) and currently hold those ECPG shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on possible Encore Capital Group (ECPG) shareholder claims based on potential breaches of fiduciary duties by certain Encore Capital Group directors and officers. Specifically, the investigation concerns allegations that Encore Capital Group’s business practices may have violated consumers’ rights, including possible violations of the Fair Debt Collection Practices Act (“FDCPA”) and comparable state statutes.
In 2008 a consumer filed a lawsuit in the United States District Court for the Northern District of Ohio Western Division, against the Encore Capital Group subsidiaries Midland Credit Management, Inc. and Midland Funding LLC alleging that their business practices violated consumers’ rights under the FDCPA and the Ohio Consumer Sales Practices Act.
In February 2011, Encore Capital Group disclosed that while it denied the claims it reached an agreement in principal to settle this lawsuit on a national class basis for approximately $5.2 million, subject to entering into a definitive settlement agreement and obtaining court approval after notice to the class.
In November 2010 and December 2010 two national class actions were filed in the United States District Court for the Southern District of California. The plaintiffs allege that certain Encore Capital Group subsidiaries violated the Telephone Consumer Protection Act (“TCPA”) by calling consumers’ cellular phones without their prior express consent.
In July 2011, the Office of the Attorney General of the State of Texas filed a petition in the District Court of Harris County, Texas against Encore Capital Group, Inc alleging violations of the Texas Deceptive Trade Practices Act and the Texas Debt Collection Act, based on its debt collection and related practices in the State of Texas.
In August 2011, Encore Capital Group, Inc filed an answer denying the allegations in the petition.
Encore Capital Group said that the parties have reached an agreement in principle to resolve the matter, and that the parties are working towards finalizing a definitive settlement agreement.
Encore Capital Group said that the proposed settlement anticipates that it will pay a financial penalty and reimburse certain costs to the state of Texas and provide credits to certain consumers.
In September 2011, the Department of Justice (“DOJ”) of the State of North Carolina issued an investigative demand to Encore Capital Group to produce documents and answer interrogatories concerning its debt collection practices in the State of North Carolina and related topics.
In December 2011, Encore Capital Group, Inc. announced the resolution of litigation initiated by the Office of the Attorney General of the State of Texas against the Company and certain of its subsidiaries.
Even though shares of Encore Capital Group, Inc. (NASDAQ:ECPG) rose from as low as $2.92 in March 09 to as high as $32.35 per share in June 2011, NASDAQ: ECPG stocks fell to recently under $20 and closed in early February 2012 at slightly above $24 per share, thus significantly below its value in June 2011.
Those who purchased shares of Encore Capital Group, Inc. (NASDAQ:ECPG), have certain options and should contact the Shareholders Foundation.
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