NEW YORK, April 24, 2014 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of World Acceptance Corporation ("World Acceptance" or the "Company")(NasdaqGS: WRLD). Investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 237.
The investigation concerns whether World Acceptance and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On July 3, 2013, World Acceptance filed a Form 12b-25/A Notification of Late Filing, stating that its latest annual report for fiscal year ended March 31 could not be completed as the Company was experiencing problems related to its loan losses. The Company stated that it had encountered unexpected delays related to additional review and analysis needed to support its allowance for loan losses, or the funds set aside to cover loans that go unpaid. World Acceptance stated that it would possibly report a material weakness in its internal control over financial reporting related to its process for determining its allowance for loan losses.
On this news, World Acceptance shares fell $10.51, or 11.85%, to close at $78.20 per share on July 5, 2013.
On March 13, 2014, World Acceptance announced its receipt of a Civil Investigative Demand ("CID") from the U.S. Consumer Financial Protection Bureau ("CFPB"), investigating whether the Company "ha[s] been or [is] engaging in unlawful acts or practices in connection with the marketing, offering, or extension of credit in violation of Sections 1031 and 1036 of the Consumer Financial Protection Act, 12 U.S.C. section 5531, 5536, the Truth in Lending Act, 15 U.S.C. section 1601, et seq., Regulation Z, 12 C.F.R. pt. 1026, or any other Federal consumer financial law" and "also to determine whether Bureau action to obtain legal or equitable relief would be in the public interest."
On this news, the Company's share price plummeted almost 20%, from a closing of $97.32, on March 12, 2014, to a closing price of $78.25 on March 13, 2014, 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.
Robert S. Willoughby
SOURCE Pomerantz LLP