SAN DIEGO and GREENVILLE, S.C., April 25, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of World Acceptance Corporation (NASDAQ: WRLD) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of South Carolina. The complaint alleges that the company and certain of its officers and directors violated the Securities and Exchange Act of 1934 between April 25, 2013 and March 12, 2014 (the "Class Period"). World Acceptance engages in small-loan consumer finance business in the United States and Mexico.
World Acceptance Is Accused of Misleading Investors
According to the complaint, shares of World Acceptance fell $19.07, or nearly 20%, to close at $78.25 on March 13, 2014, following a disclosure by the company that it is the target of an investigation by the U.S. Consumer Financial Protection Bureau. In that disclosure, World Acceptance revealed that the company had received a Civil Investigative Demand from the U.S. Consumer Financial Protection Bureau related to potential "unlawful acts or practices in connection with the marketing, offering, or extension of credit" in violation of federal law.
The complaint further alleges that, during the class period, World Acceptance failed to disclose to investors that the company's loan practices failed to confirm to the Consumer Financial Protection Act and/or the Truth in Lending Act and that the company failed to maintain adequate internal controls. As a result, World Acceptance's financial statements were false and misleading and its common stock traded at artificially higher prices during the class period.
World Acceptance Investors Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
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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