NEW YORK, Jan. 19, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Rent-A-Center, Inc. ("Rent-A-Center" or the "Company") (NASDAQ: RCII) of the February 21, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Eastern District of Texas on behalf of all those who purchased Rent-A-Center securities between July 27, 2015 and October 10, 2016 (the "Class Period"). The case, Hall v. Rent-A-Center, Inc. et al, No. 4:16-cv-00978 was filed on December 23, 2016, and has been assigned to Judge Amos Louis Mazzant III.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements, as well as failed to disclose: (1) that the Company could not properly implement its new point of sale system ("POS"); (2) that the POS was performing extremely poorly; (3) that as a result, the Company's Acceptance Now credit system could not be correctly implemented; (4) that the Company could not meet revenue and profitability guidance, and would need to revise its prior guidance; and (5), as a result, the Company's statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
Specifically, on October 11, 2016, the Company issued a press release announcing dismal financial results for third quarter 2016. Therein, the Company disclosed that it "estimates Core U.S. same store sales for the three months ended September 30, 2016 to be down approximately 12%, and Acceptance Now same store sales to be essentially flat." In addition, the Company announced the aforementioned issues regarding its implementation of the new POS.
On this news, Rent-A-Center's share price fell from $12.88 per share on October 10, 2016 to a closing price of $9.18 on October 11, 2016—a $3.70 or a 28.73% drop.
Request more information now by clicking here: www.faruqilaw.com/RCII . There is no cost or obligation to you.
If you invested in Rent-A-Center stock or options between July 27, 2015 and October 10, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/RCII. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Rent-A-Center's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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