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 Texas on behalf of those who acquired Conn’s, Inc. (“Conn’s” or the “Company”) (NASDAQ: CONN) securities during the period from September 3, 2019 through December 9, 2019. Investors have until July 14, 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) Conn’s was experiencing an increase in first payment defaults and 60-plus day delinquencies; (ii) as a result, Conn’s was reasonably likely to record an increase to its provision for bad debts; (iii) the Company made certain underwriting adjustments, including tightening its standards for new customers and online applicants; and (iv) as a result, the Company’s same-store sales would be adversely impacted.
On December 10, 2019, Conn’s reported its third quarter 2020 financial results including retail revenues of $280.3 million, compared to $284.1 million in the prior year period. Conn’s attributed the revenue decline to a decrease in same store sales, which “reflects underwriting adjustments made during the three months ended October 31, 2019.”
On this news, the Company’s share price fell $6.85 per share, or 33.4%, to close at $13.65 on December 10, 2019.
If you acquired Conn’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.