Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against FirstCash, Inc. (FCFS)
The complaint filed 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 Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) FirstCash had made more than 3,600 loans to over 1,000 active-duty members of the military and their families at usurious interest rates above 36% -- and often exceeding 200% -- in violation of the MLA and consent order between FirstCash’s predecessor and the CFPB for prior violations of the MLA (the “Order”); (2) FirstCash had failed to implement the remedial measures imposed by the Order; (3) FirstCash's financial results were, in substantial part, the product of FirstCash's violations of the MLA and the Order; and (4) as a result, FirstCash was exposed to a material undisclosed risk of legal, reputational, and financial harm if FirstCash's violations of the MLA and the Order were ever publicly disclosed.
Law Offices of Howard G. Smith reminds investors of the upcoming March 15, 2022 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased FirstCash, Inc. (“FirstCash” or the “Company”) (NASDAQ: FCFS) common stock between February 1, 2018 and November 12, 2021, inclusive (the “Class Period”).
Investors suffering losses on their FirstCash 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 November 12, 2021, the Consumer Financial Protection Bureau (“CFPB”) filed a lawsuit against FirstCash and Cash America West, alleging that the two companies violated the Military Lending Act (“MLA”) by charging higher than the allowable 36% annual rate on pawn loans to active-duty service members and their dependents. The CFPB is seeking an injunction, redress for affected borrowers, and a civil money penalty.
On this news, FirstCash share price declined $7.20, or 8.4%, to close at $78.64 per share on November 12, 2021, thereby injuring investors.
The complaint filed 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 Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) FirstCash had made more than 3,600 loans to over 1,000 active-duty members of the military and their families at usurious interest rates above 36% -- and often exceeding 200% -- in violation of the MLA and consent order between FirstCash’s predecessor and the CFPB for prior violations of the MLA (the “Order”); (2) FirstCash had failed to implement the remedial measures imposed by the Order; (3) FirstCash's financial results were, in substantial part, the product of FirstCash's violations of the MLA and the Order; and (4) as a result, FirstCash was exposed to a material undisclosed risk of legal, reputational, and financial harm if FirstCash's violations of the MLA and the Order were ever publicly disclosed.
If you purchased or otherwise acquired FirstCash common stock during the Class Period, you may move the Court no later than March 15, 2022 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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