NEW YORK, January 20, 2022 /PRNewswire/ — Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who have purchased or acquired common stock of FirstCash Holdings, Inc. (the “Company” or “FirstCash”) (NASDAQ : FCFS) between February 1, 2018 and November 12, 2021, both dates inclusive (the “Class Period”). The lawsuit was filed in United States District Court for the Northern District of Texas and alleges violations of the Securities Exchange Act of 1934.
If you purchased or otherwise acquired shares of FirstCash common stock, and/or wish to discuss your legal rights and options please visit FirstCash Holdings, Inc. Shareholder Class Action or contact Lisa Sriken free of charge at (877) 779-1414 Where [email protected].
FirstCash owns and operates pawnshops in 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 has completed its merger with pawnbroker and payday lender Cash America International, Inc. (“Cash America”). In November 2013, Cash America had entered into a consent order with the Consumer Financial Protection Bureau (CFPB) for making loans to covered service members or their dependents in violation of the Military Loans Act (MLA), related violations 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. CFPB fined Cash America $5 million and ordered him to drop $8 million to an account in order to provide redress to affected consumers.
According to the Complaint, the Defendants made false and misleading statements throughout the Class Period and failed to disclose that: (i) FirstCash made over 3,600 loans to over 1,000 active duty military personnel and to their families at usurious interest rates above 36%. %, and often exceeding 200%, in violation of the LBA and the Order; (ii) FirstCash failed to implement the corrective measures 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.
At November 12, 2021, the CFPB has announced that it has filed a complaint against FirstCash for violation of the MLA and the Ordinance. The CFPB complaint alleged that between June 2017 and May 2021 (the only period for which the CFPB currently has defendants’ transactional data), FirstCash and its subsidiary Cash America West, Inc. have together granted more than 3,600 pledge loans to more than 1,000 covered borrowers in Arizona, Nevada, Utahand 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 for at least October 2016, in violation of the order. A CFPB statement outlining the agency’s action against FirstCash said FirstCash deceived and defrauded military families and deprived them of their right to sue.
At this news, FirstCash’s common stock price fell about 28% over the next two trading days, hurting investors.
If you wish to act as the main plaintiff, you must apply to the court no later than March 15, 2022. A lead plaintiff is a representative party acting on behalf of other class members to direct litigation. Your ability to participate in any recovery does not require you to serve as the primary plaintiff. If you choose to do nothing, you can remain an absent member of the group.
If you purchased or otherwise acquired common stock of FCFS, and/or wish to discuss your legal rights and options please visit https://www.bernlieb.com/cases/firstcashholdingsinc-fcfs-shareholder-lawsuit-class-action-fraud-stock-479/ or contact Lisa Sriken free of charge at (877) 779-1414 Where [email protected].
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its customers. In addition to representing individual investors, the firm has been retained by some of the nation’s largest public and private pension funds to oversee their assets and bring lawsuits on their behalf. As a result of its success in hundreds of lawsuits and class actions, the firm has been named to the National Law Journal’s “List of Plaintiffs” thirteen times and listed in The Legal 500 for ten consecutive years.
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