WAYNE, Pa., July 23, 2015 /PRNewswire/ -- Ryan & Maniskas, LLP that a class action lawsuit has been filed in United States District Court for the Western District of Texas on behalf of all persons or entities that purchased the common stock of EZCORP, Inc. ("EZCORP" or the "Company") (NASDAQ: EZPW) between October 27, 2014 and July 16, 2015, inclusive (the "Class Period").
EZCORP shareholders may, no later than September 18, 2015, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of EZCORP and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/ezpw.
EZCORP delivers cash solutions to customers across channels, products, services and markets. With approximately 1,400 locations and branches, the Company offers customers multiple ways to access instant cash, including pawn loans and consumer loans in the United States, Mexico, Canada and the United Kingdom. The Company offers these products through four primary channels: in-store, online, at the worksite, and through a mobile platform.
On April 30, 2015, EZCORP announced a delay in its earnings release for the second quarter of fiscal 2015 due to an ongoing review of the Company's Grupo Finmart loan portfolio. On this news, shares of EZCORP fell from $9.20 to close at $8.41, representing a decline of $0.79 per share, or 8.59%. Subsequently, on May 20, 2015, the Company announced it had received a notice of noncompliance with NASDAQ's listing requirements due to its failure to timely file its 10Q, causing the stock price to fall 7.3% to close at $8.33 on May 21, 2015.
Then, on July 17, 2015, EZCORP announced it will restate its financial statements for fiscal 2014 and the first quarter of fiscal 2015. The restatement pertains to six structured asset sales, pursuant to which a portion of the Grupo Finmart loan portfolio was sold to a special purpose trust (the "Asset Sales"). Due to certain control rights that Grupo Finmart retained as servicer of the loans, the trusts should have been accounted for as "variable interest entities" and, thus, the Asset Sales should not have been accounted for as sales. Approximately $40 million in gain will be eliminated. EZCORP also failed to adequately identify out-of-payroll loans and to track the aging of non-performing loans. According to the Company, the foregoing issues indicate material weaknesses in EZCORP's internal control over financial reporting and deficiencies in the Company's disclosure controls and procedures. On this news, shares of EZCORP fell from $6.72 to $6.48, representing a loss of $0.24 per share or approximately 3.57%.
If you are a member of the class, you may, no later than September 18, 2015, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at email@example.com or visit: www.rmclasslaw.com/cases/ezpw. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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