Shareholder rights law firm Robbins LLP announces that a purchaser of Conn’s Inc. (NASDAQ: CONN) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between September 3, 2019 and December 9, 2019. Conn’s operates as a specialty retailer of durable consumer goods and related services.
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Conn’s Inc. (CONN) Accused of Misleading Shareholders
According to the complaint, in September 2019, Conn’s announced its second quarter 2020 financial results, which touted total retail sales of $306.1 million, an increase of 3.3% over the prior fiscal year period. Conn’s concluded its results with auspicious expectations for third quarter 2020, which included total retail sales growth between 4% and 8%. Contrary to these positive expectations, in December 2019, Conn’s finally reported its third quarter 2020 financial results and revealed retail revenues of only $280.3 million compared to $284.1 million in the prior year period. Conn’s attributed the revenue decline to a decrease in same store sales reflecting “underwriting adjustments made during the three months ended October 31, 2019,” which it had previously failed to disclose to investors. On this news, Conn’s’ stock price fell over 33% to close at $13.65 per share.
If you purchased Conn’s Inc. (CONN) securities between September 3, 2019 and December 9, 2020, you have until July 14, 2020, to ask the court to be appointed lead plaintiff for the class.
Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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