Initial Lawsuit
First Complaint - 01/14/2022This is a securities class action on behalf of all persons who purchased shares of FirstCash common stock between February 1, 2018 and November 12, 2021, both dates inclusive.
- Filing Date
01/14/2022 - Class Period
02/01/2018 to 11/12/2021 - Transgression
Securities Violation - Filing Firms
Kendall Law Group PLLC
Robbins Geller Rudman & Dowd LLP
VanOverbeke, Michaud & Timmony, P.C. - Case Title
Genesse County Employees' Retirement System v. Firstcash Holdings, Inc. - Docket Number
4:22-cv-00033 - Court
Texas Northern District Court - Free File
Complaint
Allegations
According to the complaint, 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 allegedly failed to disclose to investors:
(a) that 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 Military Lending Act (MLA) and the Consent Order with the Consumer Financial Protection Bureau (CFPB);
(b) that FirstCash had failed to implement the remedial measures imposed by the Consent Order;
(c) that FirstCash’s financial results were, in substantial part, the product of the company’s violations of the MLA and the Consent Order; and
(d) that as a result of the foregoing, FirstCash was exposed to a material undisclosed risk of legal, reputational and financial harm if the company’s violations of the MLA and the Consent Order were ever publicly disclosed.
Defendants
- Company
FirstCash Holdings, Inc. - Chief Executive Officer
Rick L. Wessel - Chief Financial Officer
R. Douglas Orr
