
LegalZoom.com, Inc. (LZ)
Whether directors and officers of LegalZoom.com, Inc. (LZ) breached their fiduciary duties to the company and its shareholders.
Investigation
11/12/2021
Initial Lawsuit
01/14/2022
Lawsuit Progression
03/17/2022
Investigation into FirstCash’s alleged violation of the Military Lending Act (MLA) and the Consent Order with the Consumer Financial Protection Bureau (CFPB).
11/12/2021
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.”
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$78.64 | $86.14 | $-7.15 | -8.71% |
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.
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.
03/17/2022
The court issued an order appointing the lead plaintiff and lead counsel.
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