NEW YORK, March 13, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that class action lawsuits have been filed in the United States District Court for the Southern District of Texas, on behalf of all purchasers of Conn's, Inc. common stock ("Conn's" or "Company") (Nasdaq:CONN) between April 3, 2013 and February 19, 2014, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934.
If you purchased Conn's during the Class Period, you may, no later than May 5, 2014, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported 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.
The complaints allege that throughout the Class Period defendants misrepresented or failed to disclose that: (1) the Company was increasing its business and financial results by using underwriting and collections practices that, despite defendants' statements to the contrary, weakened the Company's portfolio quality and left it vulnerable to substantial increases in bad debt; (2) the Company was experiencing rising delinquencies at a substantially worse rate than it was representing; (3) the Company's credit segment practices substantially threatened the Company's financial performance; and (4), as a result of the above, the Company's statements were materially false and misleading at all relevant times or lacked a reasonable basis in fact.
On February 20, 2014, the Company issued a press release announcing preliminary fourth quarter 2014 results and updating 2015 projected guidance. In the release, the Company revealed that the provision for bad debts at January 31, 2014 would exceed the previously issued guidance that had been confirmed as recently as December 2013. Following this news, the price of Conn's shares declined $23.91 per share, or nearly 43%, to close at $31.89 per share on February 20, 2014, on unusually heavy volume.
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