San Diego, CA -- (SBWIRE) -- 06/30/2014 -- A deadline is coming up on July 29, 2014 in the lawsuit filed for investors of Regional Management Corp (NYSE:RM) over alleged securities laws violations.
Investors who purchased shares of Regional Management Corp (NYSE:RM) shares of Regional Management Corp (NYSE:RM) pursuant to the Company’s public stock offerings on September 20, 2013 at $27.50 per share and on December 5, 2013 at $31 per share (collectively, the “Offerings”),, and / or those who purchased any NYSE:RM shares prior to September 2013 and continue to hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: July 29 2014. NYSE:RM investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
According to the complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges on behalf of purchasers of Regional Management Corp (NYSE:RM) common shares pursuant to the Company’s public stock offerings on September 20, 2013 at $27.50 per share and on December 5, 2013 at $31 per share, that Regional Management Corp, certain of its officers and directors and the investment banks that underwrote the Offerings violated the Securities Act of 1933 in connection with preparing and utilizing a materially false and misleading Registration Statement and Prospectuses to conduct the Offerings.
The plaintiff alleges that the Registration Statement and Prospectuses used to effectuate the Offerings allegedly failed to adequately disclose Regional Management Corp’s increasing deterioration of underwriting standards, leading to higher percentages of delinquencies and loan charge-offs, Regional Management Corp’s failure to adequately reserve for loan losses, and repeated debt refinancing tactics used to increase loan amounts and interest rates, a practice the U.S. Consumer Finance Protection Bureau was then actively investigating and clamping down on.
The plaintiff also claims that defendants allegedly misstated Regional Management Corp’s fourth quarter and fiscal 2012 financial reports and failed to report defects in its internal controls and that as these unscrupulous tactics and false financial statements came to light, the stock price declined approximately 50% from what the Offerings were priced at just months earlier.
On April 29, 2014, Regional Management Corp announced its first quarter 2014 results. NYSE:RM shares lost significantly value over the past months and declined to as low as $14.10 per share on May 21, 2014.
On June 27, 2014, NYSE:RM shares closed at $15.07 per share.
Those who purchased shares of Regional Management Corp (NYSE:RM) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego