FirstCash Holdings Company News: Berger Montague Investigating Securities Fraud Allegations Against FirstCash Holdings, Inc. (FCFS); The deadline for the lead applicant is March 15, 2022 | 2022-01-24 | Press Releases
Philadelphia, Pa.–(Newsfile Corp. – Jan. 24, 2022) – Berger Montague is investigating allegations of securities fraud on behalf of investors who purchased the securities of FirstCash Holdings, Inc. (“FirstCash” or the “Corporation ”) (NASDAQ: FCFS) between February 1, 2018 and November 12, 2021 (the “Class Period”).
If you purchased FirstCash securities during the Class Period, wish to discuss Berger Montague’s investigation, or have any questions regarding your rights or interests, please contact attorneys Andrew Abramowitz at [email protected] or (215) 875- 3015, or Michael Dell’Angelo at [email protected] or (215) 875-3080.
Whistleblowers: Anyone with nonpublic information about FirstCash is encouraged to confidentially participate in Berger Montague’s investigation or take advantage of the SEC’s whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
FirstCash owns and operates pawnshops in the United States and Latin America. In September 2016, FirstCash completed its merger with pawnbroker and payday lender Cash America International, Inc. In November 2013, Cash America entered into a consent order with the Consumer Financial Protection Bureau (“CFPB”) to grant loans to covered members of the military or their dependents in violation of the Military Loans Act (“MLA”). The CFPB fined Cash America $5 million and ordered it to deposit $8 million into an account to provide relief to affected consumers.
According to a recently filed lawsuit, FirstCash did not disclose that it provided more than 3,600 loans to more than 1,000 active duty service members and their families at usurious interest rates above 36% – often exceeding 200% – in violation of the LBA and the Order. As a result, the company’s financial results were artificially inflated and, in addition, FirstCash was exposed to a significant undisclosed risk of legal 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 breach of the MLA and the Order. A statement from the CFPB said FirstCash had “deceived” and “defrauded” military families and “deprived them of their right to go to court”.
On this news, FirstCash’s common stock price fell 28% over the next two trading days.
Shepherd Montague, with offices in Philadelphia, Minneapolis, Washington, D.C. and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for more than five decades and acts as lead counsel before the courts. across the United States.
Andrew Abramowitz, Senior Counsel
Michael Dell’Angelo, executive shareholder
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