SAN DIEGO, Sept. 14, 2015 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed on behalf of certain purchasers of shares of EZCORP Inc (NASDAQ:EZPW) over alleged Securities Laws Violations by EZCORP.
Investors who purchased shares of EZCORP Inc (NASDAQ:EZPW) have certain options and for certain investors are short and strict deadlines running. Deadline: September 18, 2015. (NASDAQ:EZPW) investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff claims that that defendants made allegedly certain false and/or misleading statements and/or failed to disclose, among others that EZCORP improperly recognized particular structured assets sales, that EZCORP improperly classified certain loans, that, as a result, EZCORP overstated its gains on assets sales and accrued interest revenue, that, as such, EZCORP’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles, that EZCORP lacked adequate internal and financial controls, and that, as a result of the foregoing, defendants’ statements were materially false and misleading at all relevant times.
On April 30, 2015, EZCORP announced a delay in its earnings release for the second quarter of fiscal 2015 due to an ongoing review of the Company's Grupo Finmart loan portfolio. On May 20, 2015, the Company announced it had received a notice of noncompliance with NASDAQ's listing requirements due to its failure to timely file its 10Q.
On July 17, 2015, EZCORP announced it will restate its financial statements for fiscal 2014 and the first quarter of fiscal 2015. The restatement pertains to six structured asset sales, pursuant to which a portion of the Grupo Finmart loan portfolio was sold to a special purpose trust (the "Asset Sales"). Due to certain control rights that Grupo Finmart retained as servicer of the loans, the trusts should have been accounted for as "variable interest entities" and, thus, the Asset Sales should not have been accounted for as sales. Approximately $40 million in gain will be eliminated. EZCORP also failed to adequately identify out-of-payroll loans and to track the aging of non-performing loans. According to the Company, the foregoing issues indicate material weaknesses in its internal control over financial reporting and deficiencies in its disclosure controls and procedures.
Those who purchased (NASDAQ:EZPW) shares have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.