NEW YORK, June 6, 2014 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action has been commenced on in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Regional Management Corp. ("Regional Management" or the "Company") (NYSE:RM) pursuant to the Company's public stock offerings on September 20, 2013 at $27.50 per share and on December 5, 2013 at $31 per share (collectively, the "Offerings"), seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act").
Regional Management is a subprime consumer finance company, providing various loan products primarily to subprime borrowers with limited access to consumer credit from banks, thrifts, credit card companies, and other traditional lenders.
The complaint alleges that the Registration Statement and Prospectuses used to effectuate the Offerings failed to adequately disclose the Company's (a) increasing deterioration of underwriting standards, leading to higher percentages of delinquencies and loan charge-offs; (b) failure to adequately reserve for loan losses; and (c) repeated debt refinancing tactics used to increase loan amounts and interest rates, a practice that the U.S. Consumer Finance Protection Bureau was then actively investigating. In addition, defendants misstated the Company's fourth quarter and fiscal 2012 financial reports and failed to report defects in its internal controls. The stock price has declined approximately 50% from where the Offerings were priced at just months earlier.
Wolf Haldenstein has represented individual and institutional investors for many years, serving as lead counsel in numerous cases in United States federal and state courts. Please visit the Wolf Haldenstein website (http://www.whafh.com) for more information about the firm.
If you purchased shares of Regional Management on either of these two public stock offerings, or are a current holder of Regional Management shares, please contact us immediately to discuss your options and rights in this matter:
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Wolf Haldenstein Adler Freeman & Herz LLP
270 Madison Avenue
New York, New York 10016
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Wolf Haldenstein did not file the original complaint in this case.
Source:Wolf Haldenstein Adler Freeman & Herz LLP