The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Aaron’s, Inc. (“Aaron’s” or the “Company”) (NYSE: AAN) securities during the period from March 2, 2018 through February 19, 2020. Investors have until April 28, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Aaron’s had inadequate disclosure controls, procedures, and compliance measures; (ii) consequently, the operations of Aaron’s Progressive and AB segments were in violation of the FTC Act and/or relevant FTC regulations; (iii) consequently, Aaron’s earnings from those segments were partially derived from unlawful business practices and were thus unsustainable; and (iv) the full extent of Aaron’s liability regarding the FTC’s investigation into its Progressive and AB segments, Aaron’s noncompliance with the FTC Act, and the likely negative consequences of all the foregoing on the Company’s financial results.
On July 26, 2018, Aaron’s announced that in July 2018 it had received civil investigative demands (“CIDs”) from the FTC requesting the production of documents and answers to written questions to determine whether disclosures related to financial products offered by the Company through its AB and Progressive segments were in violation of the FTC Act. On this news, Aaron’s stock price fell $5.38 per share, or 11.0%, to close at $43.47 on July 27, 2018.
On April 25, 2019, Aaron’s announced that in April 2019 Aaron’s AB segment “received an unrelated CID from the FTC focused on certain transactions involving the purchase and sale of customer lease agreements, and whether such transactions violated the FTC Act.”
On February 20, 2020, Aaron’s announced that the Company’s Progressive segment had reached an agreement in principle with FTC staff regarding the CID from the FTC that Progressive received in July 2018. Aaron’s advised investors that “[u]nder the proposed agreement, which requires final approval by FTC Commissioners and the U.S. District Court for the Northern District of Georgia, Progressive will make a payment of $175 million and enhance certain compliance-related activities, including monitoring, disclosure and reporting requirements.” On this news, Aaron’s stock price fell $10.70 per share, or 19.1%, to close at $45.45 on February 20, 2020.
If you acquired Aaron’s securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.