FirstCash Holdings, Inc. Image
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FirstCash Holdings, Inc.

Class Action
  • Active
Investigation
11/12/2021
Initial Lawsuit
01/14/2022
Lawsuit Progression
03/17/2022

Investigation

Investigation into FirstCash’s alleged violation of the Military Lending Act (MLA) and the Consent Order with the Consumer Financial Protection Bureau (CFPB).

  • Investigation Date
    11/12/2021
  • Hypothetical Affected Period
    February 1, 2018 to November 12, 2021
  • Hypothetical Transgression
    Securities Violation
Main Event

CFPB Sues for "Cheating Military Families"

11/12/2021

U.S. Agency

The Consumer Financial Protection Bureau (CFPB) files a lawsuit in a Texas federal district court against FirstCash, Inc. and Cash America West, Inc. alleging that the two companies violated the Military Lending Act (MLA) by charging higher than the allowable 36% annual percentage rate on pawn loans to active-duty servicemembers and their dependents. The CFPB also alleges that FirstCash violated the 2013 CFPB order (see our timeline) against its predecessor company prohibiting MLA violations.

“FirstCash is a repeat offender and cheated military families over and over again,” said CFPB Director Rohit Chopra. “FirstCash and Cash America West gouged military families and robbed them of their rights to go to court.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$78.64 $86.14 $-7.15 -8.71%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 01/14/2022

This 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

Lawsuit progression

  • Docket Number
    4:22-cv-00033
  • Court
    Texas Northern District Court

Lead Counsel

03/17/2022

The court issued an order appointing the lead plaintiff and lead counsel.

Factual Timeline

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