SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that it has filed a class action lawsuit seeking to represent purchasers of common stock of FirstCash Holdings, Inc. (NASDAQ: FCFS) between February 1, 2018 and November 12, 2021, both dates inclusive (the “Class Period”), and charging FirstCash and certain of its senior executives with violations of the Securities Exchange Act of 1934. The PremierCash the class action was filed on January 14, 2022 in the Northern District of Texas and is captioned Genesee County Employees Retirement System v FirstCash Holdings, Inc., No. 22-cv-00033.
The plaintiff is represented by Robbins Geller, who has extensive experience in pursuing investor class actions, including actions involving financial fraud. You can view a copy of the complaint by clicking here.
If you have suffered significant losses and wish to act as the lead plaintiff of the PremierCash class action, please provide your information by clicking here. You can also contact a lawyer JC Sanchez of Robbins Geller by calling 800/449-4900 or emailing [email protected] Principal Applicant’s Requests for PremierCash the class action must be filed with the court no later than March 15, 2022.
CASE ALLEGATIONS: FirstCash owns and operates pawnshops in the United States and Latin America. Through its pawnshops, FirstCash provides non-recourse pawnshops and purchases goods to customers to meet their short-term cash flow needs. In September 2016, FirstCash completed its merger with pawnbroker and payday lender Cash America International, Inc. (“Cash America”). In November 2013, Cash America entered into a consent order with the Consumer Financial Protection Bureau (“CFPB”) for making loans to covered military personnel or their dependents in violation of the Military Lending Act (“MLA”) , violations related to debt collection, failure to prevent or timely detect problematic behavior due to inadequate internal compliance and failure to maintain required records (the “Order”). In the Order, Cash America agreed to cease and desist from violations and to implement a plan designed to ensure its future compliance with the terms of the Order. The CFPB fined Cash America $5 million and ordered it to deposit $8 million into an account to provide relief to affected consumers.
the PremierCash the class action alleges that, throughout the class action period, the defendants made false and misleading statements and failed to disclose that: (i) FirstCash made over 3,600 loans to over 1,000 service members in active service and their families at usurious interest rates above 36% – and often above 200% – in violation of the MLA and the Ordinance; (ii) FirstCash failed to implement the remedies imposed by the order; (iii) FirstCash’s financial results were, in large part, the product of FirstCash’s violations of the MLA and the Order; and (iv) as a result, FirstCash was exposed to material undisclosed risk of legal, reputational and financial harm if FirstCash’s violations of the MLA and the Order were ever publicly disclosed.
On November 12, 2021, the CFPB announced that it had filed a complaint against FirstCash for breach of the MLA and the Order. The CFPB complaint alleged that “between June 2017 and May 2021 (the only period for which the Bureau currently has defendants’ transactional data), [FirstCash and its subsidiary Cash America West, Inc.] together have granted over 3,600 pledge loans to over 1,000 covered borrowers in Arizona, Nevada, Utah and Washington. The CFPB found that, for all the loans at issue, FirstCash charged interest rates in excess of 36%, with rates frequently exceeding 200%. Additionally, the CFPB found that FirstCash’s loan sharking practices had been ongoing since at least October 2016 in violation of the order. A CFPB statement outlining the agency’s action against FirstCash said FirstCash had “deceived” and “defrauded” military families and “deprived them of their right to go to court.” At this news, FirstCash’s common stock price fell about 28% on the next two trading days, hurting investors.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased shares of FirstCash common stock during the class action period to seek appointment as a lead plaintiff in the PremierCash class action. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the PremierCash class action. The main plaintiff can select a law firm of his choice to plead PremierCash class action. An investor’s ability to participate in any potential future upturn in the PremierCash the class action does not depend on the status of principal plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm representing investors in securities class actions. Robbins Geller’s lawyers secured many of the largest shareholder recoveries in history, including the largest ever securities class action lawsuit – $7.2 billion – in In re Enron Corp. Dry. Dispute. The 2020 ISS Securities Class Action Services Top 50 report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiff firm. . Please visit http://www.rgrdlaw.com for more information.
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