San Diego, CA -- (SBWIRE) -- 06/10/2014 -- An investor, who purchased shares of Regional Management Corp (NYSE:RM), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Regional Management Corp in connection with certain allegedly false and misleading statements made in connection with the Company’s public stock offerings on September 20, 2013 at $27.50 per share and on December 5, 2013 at $31 per share
Investors who purchased shares of Regional Management Corp (NYSE:RM) 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 firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint 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.
Regional Management Corp reported that its annual Total Revenue rose from $86.83 million in 2010 to $170.63 million in 2013 and that its respective Net Income grew from $16.44 million to $28.79 million.
Shares of Regional Management Corp (NYSE:RM) increased from $13.67 per share in June 2012 to as high as $35.93 per share in January 2014.
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 6, 2014, NYSE:RM shares closed at $14.36 per share.
Those who purchased shares of Regional Management Corp have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego