NEW YORK, May 19, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Conn's, Inc. ("Conn's" or the "Company") (NASDAQ:CONN) of the July 14, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Conn's stock or options between September 3, 2019 and December 9, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/CONN.
There is no cost or obligation to you.
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 [email protected].
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of Texas on behalf of all those who purchased Conn's securities between September 3, 2019 and December 9, 2019 (the "Class Period"). The case, Uddin v. Conn's Inc. et al., No. 4:20-cv-01705 was filed on May 15, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose: (1) that Conn's was experiencing an increase in first payment defaults and 60-plus day delinquencies; (2) that, as a result, Conn's was reasonably likely to record an increase to its provision for bad debts; (3) that the Company made certain underwriting adjustments, including tightening its standards for new customers and online applicants; (4) that, as a result, the Company's same-store sales would be adversely impacted; and (5) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On December 10, 2019, before the market opened, Conn's reported its third quarter 2020 financial results in a press release. Therein, the Company reported retail revenues of $280.3 million, compared to $284.1 million in the prior year period. Conn's attributed the revenue decline to a decrease in same store sales, which "reflects underwriting adjustments made during the three months ended October 31, 2019."
On this news, the Company's stock price fell from $20.50 per share on December 9, 2020 to $13.65 per share on December 10, 2020: a $6.85 or 33.41% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who 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 to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Conn's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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