NEW YORK, Jan. 19, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against FirstCash, Inc. (“FirstCash”) (NASDAQ: FCFS) in the United States District Court for the Northern District of Texas on behalf of investors who purchased FirstCash’s common stock between February 1, 2018 and November 12, 2021, both dates inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and misleading statements and failed to disclose that: (1) the Company 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 MLA and the Order; (2) the Company had failed to implement the remedial measures imposed by the Order; (3) the Company’s financial results were, in substantial part, the product of the Company’s violations of the MLA and the Order; and (iv) as a result, the Company was exposed to a material undisclosed risk of legal, reputational, and financial harm if the Company’s violations of the MLA and the Order were ever publicly disclosed.
On November 12, 2021, the CFPB announced that it had filed a complaint against the Company for violations of the MLA and the Order. The Consumer Financial Protection Bureau (“CFPB”) complaint alleged that “between June 2017 and May 2021 (the only period for which the Bureau currently has Defendants’ transactional data), [the Company and its subsidiary Cash America West, Inc.] together made over 3,600 pawn loans to more than 1,000 covered borrowers in Arizona, Nevada, Utah, and Washington.” The CFPB found that, in all of the loans at issue, the Company imposed interest rates over 36%, with rates frequently exceeding 200%. Additionally, the CFPB found that the Company’s usurious loan practices had been ongoing since at least October 2016 in violation of the Order. A CFPB release describing the agency’s action against the Company stated that the Company had “cheated” and “gouged” military families and “robbed them of their rights to go to court.” On this news, the price of the Company common stock declined approximately 28% the following two trading days, damaging investors.
Investors who purchased or otherwise acquired shares of FirstCash should contact the Firm prior to the March 15, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected] .
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