Law Offices of Howard G. Smith reminds investors of the upcoming July 14, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Conns, Inc. (Conns or the Company) (NASDAQ: CONN) securities between September 3, 2019 and December 9, 2019, inclusive (the Class Period).
Investors suffering losses on their Conns investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
On December 10, 2019, before the market opened, Conns reported its third quarter 2020 financial results in a press release. Therein, the Company reported retail revenues of $280.3 million, compared to $284.1 million in the prior year period. Conns attributed the revenue decline to a decrease in same store sales, which reflects underwriting adjustments made during the three months ended October 31, 2019.
On this news, the Companys share price fell $6.85 per share, or over 33%, to close at $13.65 per share on December 10, 2019, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Conns was experiencing an increase in first payment defaults and 60-plus day delinquencies; (2) that, as a result, Conns was reasonably likely to record an increase to its provision for bad debts; (3) that the Company made certain underwriting adjustments, including tightening its standards for new customers and online applicants; (4) that, as a result, the Companys same-store sales would be adversely impacted; and (5) that, as a result of the foregoing, Defendants positive statements about the Companys business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Conns securities, you may move the Court no later than July 14, 2020, to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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