SAN DIEGO and GREENVILLE, S.C., June 3, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Regional Management Corp. (NYSE: RM) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 in connection with the company's September 20, 2013 stock offering at $27.50 per share and December 5, 2013 offering at $31 per shares (the "Offerings"). Regional Management is a specialty consumer finance company that provides loan products primarily to subprime customers with limited access to consumer credit from banks, thrifts, credit card companies, and other traditional lenders.
Regional Management Accused of Failing to Disclose Material Facts in Its Registration Statement
According to the complaint, as of May 30, 2014, shares of Regional Management had declined roughly 50% since the company's Offerings. Specifically, the complaint alleges that at the time the Registration Statement and Prospectuses were prepared, Regional Management knew and failed to disclose that: (i) the company had been increasing its refinancing of loans in an amount greater than the original loan amount; (ii) its underwriting standards had deteriorated, leading to higher percentages of delinquencies and charge-offs thereby negatively impacting the company's 2013 and first quarter 2014 net earnings and; (iii) Regional Management misstated its fourth quarter and fiscal 2012 financial reports, significantly overstating the company's previously reported interest income, insurance premiums, revenues, net income, and assets.
Regional Management Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in Regional Management and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog http://www.robbinsarroyo.com/shareholders-rights-blog/regional-management-corp/
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP.