ATLANTA, Feb. 18, 2002 (PRIMEZONE) - Holzer & Holzer announced today that a class action has been filed in the United States District Court for the Eastern District of Texas, Texarkana Division on behalf of purchasers of Rent-A-Center Inc. ("Rent-A-Center" or the "Company") (Nasdaq:RCII) publicly traded securities during the period between April 25, 2001 and October 8, 2001 inclusive (the "Class Period"). A copy of the complaint filed is available from the Court or by contacting Holzer & Holzer (toll-free) at (888) 508-6832 or by sending an e-mail to michaelfisteljr@msn.com.
The Complaint alleges that Rent-A-Center and certain of its officers and directors issued a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of Rent-A-Center publicly traded securities. For example, the Complaint alleges that on April 25, 2001, Rent-A-Center issued a press release announcing record results for the first quarter of 2001 and highlighting the Company's resilience in a weakening economy. The representations in the press release were, according to the allegations in the Complaint, materially false and misleading because the Company did not disclose that its expenses were rising dramatically as Rent-A-Center attempted to combat weakening demand with deep discounts and promotions. The Complaint further alleges that while in possession of this adverse non-public information, Rent-A-Center completed a secondary offering of 3,200,000 shares of its common stock at $42.50 per share on May 25, 2001. The Complaint alleges that Defendant J. Ernest Talley (Chairman and CEO until October 8, 2001) ("Talley") sold 1,700,000 Rent-A-Center shares in the secondary offering, grossing over $72 million, and defendant Mark E. Speese (Director until October 8, 2001, thereafter Chairman and CEO) ("Speese") sold 500,000 shares, grossing over $72 million. Then, as alleged in the Complaint, on May 31, 2001, defendant Talley sold an additional 1,955,000 shares of Rent-A-Center common stock at $40.38 per share, grossing over $78 million. Subsequently, on October 8, 2001, alleges the Complaint, only five months after the secondary offering, Rent-A-Center issued a press release announcing that earnings for the third and fourth quarter of 2001 would be significantly less than the Company's previous guidance to the market, due to rising expenses. The Complaint alleges that in response to this announcement, Rent-A-Center's stock price dropped by 19% in one day on heavy trading volume.
If you purchased securities in Rent-A-Center during the Class Period set forth above, you may, no later than March 5, 2002, move the Court to serve as a lead plaintiff in the action. In order to serve as a lead plaintiff, however, you must meet certain legal requirements. If you have any questions about your rights with respect to this lawsuit, you may contact Holzer & Holzer, Michael I. Fistel, Jr., Esq. (toll-free) at (888) 508-6832, or inquire via e-mail to michaelfisteljr@msn.com.
Holzer & Holzer has substantial experience representing investors in securities fraud class action lawsuits such as this. Holzer & Holzer is located in Atlanta, Ga. but represents investors in securities class action lawsuits throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call the Firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca