FCFS) SHAREHOLDER CLASS ACTION: Bernstein Liebhard LLP Reminds Investors of Deadline for Filing a Complaint by Lead Plaintiff in a Securities Class Action Against FirstCash Holdings, Inc. (NASDAQ: FCFS)
NEW YORK, March 7, 2022 /PRNewswire/ — Bernstein Liebhard LLP is reminding investors of the deadline for filing a motion by lead plaintiff in a securities class action lawsuit filed on behalf of investors who have purchased or acquired common stock of FirstCash Holdings, Inc. (the “Company”) to have. or “FirstCash”) (NASDAQ: FCFS) between February 1, 2018 and November 12, 2021, both dates inclusive (the “Class Period”). The lawsuit has been filed The United States District Court for the Northern District Texas and alleges violations of the Securities Exchange Act of 1934.
If you purchased or otherwise acquired FirstCash common stock and/or discuss your legal rights and options please visit Class action lawsuit brought by shareholders of FirstCash Holdings, Inc or contact Joe Seidman toll-free at (877) 779-1414 or [email protected].
FirstCash owns and operates pawn shops in The United States and Latin America. Through its pawn shops, FirstCash offers non-recourse pawn loans and purchases goods from customers to enable them to meet short-term cash needs. in the September 2016, FirstCash has completed its merger with pawn shop and payday lender Cash America International, Inc. (“Cash America”). in the November 2013, Cash America had entered into a consent order with the Consumer Financial Protection Bureau (CFPB) for lending to insured military personnel or their dependents in violation of the Military Lending Act (MLA), which failed to comply with debt collection-related violations of problematic behavior due to insufficient prevent or identify in a timely manner internal compliance and failure to maintain required records (the “Assignment”). In the order, Cash America agreed to cease and desist from the violations and to implement a plan designed to ensure future compliance with the terms of the order. The CFPB fined Cash America 5 million dollars and ordered it to be deposited 8 million dollars into an account to provide relief to affected consumers.
According to the lawsuit, during the class period, the defendants made false and misleading statements and failed to disclose the following: (i) FirstCash had issued more than 3,600 loans to over 1,000 active duty military personnel and their families at exorbitant interest rates in excess of 36% and often in excess of 200% under violating the MLA and Order; (ii) FirstCash failed to implement the remedies required by the Order; (iii) FirstCash’s financial results were in substantial part the product of FirstCash’s violations of the MLA and the Order; and (iv) as a result, FirstCash faced a material, undisclosed risk of legal, reputational and financial damage if FirstCash’s violations of the MLA and the Order were ever to become public knowledge.
At November 12, 2021, the CFPB announced that it had filed a complaint against FirstCash for violations of the MLA and the Order. The CFPB complaint alleged that between June 2017 and May 2021 (the only period for which the CFPB currently has defendants’ transaction data) FirstCash and its subsidiary Cash America West, Inc. have collectively issued over 3,600 mortgage loans to more than 1,000 covered borrowers Arizona, Nevada, Utahand Washington. The CFPB found that FirstCash charged interest rates in excess of 36% on all of the loans in question, with rates often exceeding 200%. In addition, the CFPB found that FirstCash’s usury lending practices have been ongoing at least since then October 2016, in violation of the order. A CFPB release detailing the agency’s actions against FirstCash said that FirstCash had deceived and stabbed military families and deprived them of the right to go to court.
As a result of this news, FirstCash’s common stock fell about 28% in the following two trading days, hurting investors.
If you wish to appear as lead plaintiff, you must call the court no later than March 15, 2022. A lead plaintiff is a representative party acting on behalf of other group members in conducting the litigation. Your ability to participate in a recovery does not require you to serve as lead plaintiff. If you choose not to take action, you can remain an absentee class member.
If you purchased or otherwise acquired FCFS common stock and/or discuss your legal rights and options please visit https://www.bernlieb.com/cases/firstcashholdingsinc-fcfs-shareholder-lawsuit-class-action-fraud-stock-479/ or contact Joe Seidman toll-free at (877) 779-1414 or [email protected].
Since 1993, Bernstein Liebhard LLP has recovered $3.5 billion for his customers. In addition to representing individual investors, the firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and conduct litigation on their behalf. Due to its success in litigating hundreds of court cases and class actions, the firm has been named to the National Law Journal’s Plaintiff Hot List thirteen times and has been included in The Legal 500 for ten consecutive years.
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