FirstCash Holdings, Inc.

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.