Lawsuit Overview
Settlement Overview
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June 28, 2018 - The court preliminarily approved the settlement.
June 13, 2018 - A stipulation of settlement was filed by the parties.
May 5, 2016 - The court granted in part and denied in part defendants motion to dismiss.
August 28, 2015 - A motion to dismiss the fourth amended consolidated complaint was filed.
July 21, 2015 - A fourth amended consolidated complaint was filed.
April 10, 2015 - A third amended consolidated complaint was filed.
December 15, 2014 - A motion to dismiss the second amended consolidated complaint was filed.
October 29, 2014 - A second amended consolidated complaint was filed.
September 4, 2014 - A motion to dismiss the amended consolidated complaint was filed.
July 21, 2014 - An amended consolidated complaint was filed.
March 5, 2014 - An investor in shares of Conn's Inc (NASDAQ: CONN) filed a lawsuit in the U.S. District Court for the Southern District of Texas against Conn's Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between April 3, 2013 and February 19, 2014.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Conn's Inc (NASDAQ: CONN) between April 3, 2013 and February 19, 2014, that Conn's Inc and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that defendants between April 3, 2013 and February 19, 2014 issued allegedly false and misleading statements or allegedly 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, and that as a result of the defendants’ statements, Conn’s stock traded at artificially inflated levels between April 3, 2013 and February 19, 2014, reaching a high of $79.24 per share on December 26, 2013. Conn's Inc reported that its Total Revenue rose from $792.30 million for the 12 months period that ended on January 31, 2012 to $865.03 million for the 12 months period that ended on January 31, 2013 and that its Net Loss of $3.72 million for the 12 months period that ended on January 31, 2012 turned into a Net Income of $52.61 million for the 12 months period that ended on January 31, 2013. Shares of Conn's Inc (NASDAQ: CONN) grew from $4.29 per share in early 2011 to as high as $79.24 per share last December 2013. T
hen on February 20, 2014, Conn's Inc announced its preliminary fourth quarter fiscal 2014 results and updated its fiscal earnings guidance. Conn's Inc announced that its “[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.” Conn's Inc announced also revealed that it was lowering its recently issued fiscal 2015 earnings guidance.
Shares of Conn's Inc (NASDAQ: CONN) declined from $79.24 per share in December 2013 to as low as $31.89 per share on February 20, 2014. On March 5, 2014, Conn's Inc (NASDAQ: CONN) shares closed at $35.56 per share.