NEW YORK, March 18, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP announces the filing of a class action lawsuit against CONN'S Inc. ("CONN'S" or the "Company") (Nasdaq:CONN) and certain of its officers. The class action, filed in United States District Court, Southern District of Texas, on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of CONN'S between April 3, 2013 and February 19, 2014 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased CONN'S securities during the Class Period, you have until May 5, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
CONN'S is a specialty retailer that offers consumer goods and related services, in addition to a proprietary credit solution for its consumers. The Company has approximately 68 stores in several states and conducts its business through an online store.
The Complaint alleges that throughout the Class Period, Defendants issued false and misleading statements or 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. As a result of the defendants' false statements, Conn's stock traded at artificially inflated levels throughout the Class Period, reaching a high of $79.24 per share on December 26, 2013.
On February 20, 2014, the Company issued a press release announcing preliminary fourth quarter fiscal 2014 results and updating its fiscal 2015 earnings guidance. The press release revealed that the Company's "[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." In the press release, the Company also revealed that it was lowering its recently issued fiscal 2015 earnings guidance.
On this news, CONN's shares declined $23.91 per share, or nearly 42.8%, to close at $31.89 per share on February 20, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.