FIRSTCASH HOLDINGS, INC. (NASDAQ: FCFS) SHAREHOLDER CLASS ACTION ALERT: Bernstein Liebhard LLP Announces that a Securities Class Action Lawsuit Has Been Filed Against FirstCash Holdings, Inc. (NASDAQ: FCFS)
NEW YORK, Jan. 20, 2022 /PRNewswire/ -- Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired common stock of FirstCash Holdings, Inc. (the "Company" or "FirstCash") (NASDAQ: FCFS) between February 1, 2018 and November 12, 2021, both dates inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the Northern District of Texas and alleges violations of the Securities Exchange Act of 1934.
If you purchased or otherwise acquired FirstCash common stock, and/or would like to discuss your legal rights and options please visit FirstCash Holdings, Inc. Shareholder Class Action Lawsuit or contact Lisa Sriken toll free at (877) 779-1414 or lsriken@bernlieb.com.
FirstCash owns and operates pawn stores in the United States and Latin America. Through its pawn stores, FirstCash provides non-recourse pawn loans and buys merchandise from customers to allow them to meet short-term cash needs. In September 2016, FirstCash finalized its merger with pawnshop provider and payday lender Cash America International, Inc. ("Cash America"). In November 2013, Cash America had entered into a Consent Order with the Consumer Financial Protection Bureau (CFPB) for making loans to covered members of the military or their dependents in violation of the Military Lending Act (MLA), which violations related to debt collection, failure to prevent or timely detect problematic conduct due to inadequate internal compliance, and failure to maintain required records (the "Order"). In the Order, Cash America agreed to cease and desist from the violations and to implement a plan designed to ensure its future compliance with the terms of the Order. The CFPB fined Cash America $5 million and ordered it to deposit $8 million into an account in order to provide redress to affected consumers.
According to the complaint, Defendants made false and misleading statements throughout the Class Period and failed to disclose that: (i) 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 MLA and the Order; (ii) FirstCash had failed to implement the remedial measures imposed by the Order; (iii) FirstCash's financial results were, in substantial part, the product of FirstCash's violations of the MLA and the Order; and (iv) as a result, FirstCash was exposed to a material undisclosed risk of legal, reputational, and financial harm if FirstCash'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 FirstCash for violations of the MLA and the Order. The CFPB complaint alleged that between June 2017 and May 2021 (the only period for which the CFPB currently has Defendants' transactional data), FirstCash 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, FirstCash imposed interest rates over 36%, with rates frequently exceeding 200%. Additionally, the CFPB found that FirstCash'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 FirstCash stated that FirstCash had cheated and gouged military families and robbed them of their rights to go to court.
On this news, the price of FirstCash common stock declined approximately 28% over the following two trading days, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than March 15, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or otherwise acquired FCFS common stock, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/firstcashholdingsinc-fcfs-shareholder-lawsuit-class-action-fraud-stock-479/ or contact Lisa Sriken toll free at (877) 779-1414 or lsriken@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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Contact Information:
Lisa Sriken
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
lsriken@bernlieb.com
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