NEW YORK, May 5, 2014 (GLOBE NEWSWIRE) -- Scott+Scott, Attorneys at Law, LLP and Labaton Sucharow LLP filed a class action lawsuit on May 5, 2014 in the U.S. District Court for the Southern District of Texas. The lawsuit was filed on behalf of all persons who, between April 3, 2013 and February 19, 2014, inclusive (the "Class Period"), purchased or otherwise acquired the common stock and/or call options, or sold/wrote put options on the common stock of Conn's, Inc. (Nasdaq:CONN) ("Conn's" or the "Company").
If you purchased or acquired Conn's common stock and/or call options, or sold/wrote put options on Conn's common stock during the Class Period as defined above, you are a member of the "Class" and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Southern District of Texas no later than May 5, 2014. A lead plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as lead plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as lead plaintiff or have any questions about this lawsuit, you may contact Michael Burnett of Scott+Scott (mburnett@scott-scott.com, (800) 404-7770, (860) 537-5537) or visit the Scott+Scott website for more information: http://www.scott-scott.com. You may also contact Rachel A. Avan, Esq. of Labaton Sucharow LLP, at (800) 321-0476 or (212) 907-0709, or via email at ravan@labaton.com. If you are a member of the Class, you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm.
Conn's is headquartered in The Woodlands, Texas, and is incorporated in Delaware. The Company operates approximately 80 stores in Texas, Louisiana, Arizona, New Mexico, and Oklahoma and also offers products for sale through its website. The Company's primary sources of revenue are the sale of merchandise, related warranty services, and providing financing to its customers. Conn's offers financing to its customers through both third-party credit programs and its own proprietary credit program that the Company claims to be a distinguishing feature of its operations and a significant factor in its ability to attract customers.
The complaint charges Conn's and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder. The complaint alleges that, during the Class Period, Defendants made false and misleading statements and concealed material information about Conn's business concerning the quality, risk, and effects of the Company's customer credit portfolio.
The truth about the weakness and risks of Conn's credit portfolio and the resulting effects on Conn's operations and outlook was revealed through two disclosures. First, on September 5, 2013, Conn's issued a press release and hosted a conference call in which the Company revealed that it had been forced to make a greater provision for bad debts than expected due to "unexpected deteriorat[ion]" in delinquency. However, the Defendants offered reassuring comments to investors, including claims that corrective actions had been completed and reaffirming guidance for the full fiscal year ending January 31, 2014. In response to this partial disclosure of the true state of Conn's business and prospects, the price of Conn's common stock declined $7.95 per share, or 11.64 percent, to close at $60.36 per share that day on heavy trading volume.
Then, on February 20, 2014, the Company issued a press release announcing disappointing preliminary fourth quarter fiscal 2014 results and lowering earnings guidance for fiscal full-year 2015. In the press release, Conn's disclosed that its credit segment provision for bad debts was expected to exceed previously issued full-year fiscal 2014 guidance and that the percentage of the Company's debt portfolio that was 60-plus days delinquent had increased by 30 basis points from the prior quarter. On this news, the price of Conn's common stock fell $23.91 per share, or 42.85 percent, to close at $31.89 per share on extremely heavy trading volume.
The plaintiffs are represented by Scott+Scott, Attorneys at Law, LLP and Labaton Sucharow LLP. Scott+Scott has significant experience prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide. If you have any questions regarding this matter, please contact: Michael Burnett Scott+Scott, Attorneys at Law, LLP, (800) 404-7770 or (860) 537-5537; scottlaw@scott-scott.com, or mburnett@scott-scott.com.
Labaton Sucharow LLP represents many of the largest pension funds in the United States and internationally with collective assets under management of more than $2 trillion. With nearly 60 full-time attorneys, the Firm's litigation reputation is built on its in-house team of investigators, financial analysts, and forensic accountants. The Firm has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY and Wilmington, DE. More information about Labaton Sucharow is available at www.labaton.com.