NEW YORK, Nov. 20, 2013 /PRNewswire/ -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP is investigating claims on behalf of investors of DFC Global Corp. ("DFC Global" or the "Company")(NASDAQ: DLLR). Such investors are advised to contact Lesley F. Portnoy at firstname.lastname@example.org or 888-476-6529, ext. 223.
The investigation concerns whether DFC Global and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On April 1, 2013, the Company preannounced results for its third quarter of 2013 that were seriously impacted by poor loan performance, and reported that the Company's outstanding loans in the U.K. had become immediately due and were in default because they could not be repaid. According to DFC Global, the Company as a whole experienced a loss rate of above 25%, and a loss rate of approximately 35% in the U.K. Because of the spiking loss rates, the Company also slashed its fiscal year 2013 diluted operating earnings per share guidance from $2.35 – $2.45 per share to $1.70 – $1.80 per share. On this news, the price of the Company's stock declined $3.60 per share, or nearly 22%, to close at $13.04 per share on April 1, 2013, on unusually heavy trading volume.
Then, on August 22, 2013, DFC Global announced earnings for its fourth quarter of 2013 during which it again reported soaring loan defaults in the U.K. with the Company's loan loss provision increasing to 25.7%. Additionally, DFC Global disclosed that it expected to incur a recurring $10 – $15 million of expenses for regulatory, legal, audit, and compliance-related costs relating to its payday lending program. DFC Global's losses in the U.K. were so severe that the Company was unable to provide earnings per share guidance for fiscal 2014. On this news, the price of the Company's stock declined an additional $4.59 per share, or almost 29%, to close at $11.31 per share on August 23, 2013, again on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, San Diego and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Lesley F. Portnoy
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
SOURCE Pomerantz Grossman Hufford Dahlstrom & Gross LLP