Shareholder rights law firm Johnson & Weaver, LLP has commenced an investigation into whether certain officers and directors of Conns, Inc. (NASDAQ: CONN) violated state or federal laws by communicating erroneous information about the Company. Conns is engaged in the specialty retail of durable consumer products in the United States.
Conns’ shares fell $21.74, or nearly 40%, in early morning trading on February 20, 2014. This decline followed the release of disappointing fourth-quarter fiscal 2014 results and lowered 2015 earnings guidance. Specifically, the Company sees fourth quarter EPS of $0.75-0.80, excluding non-recurring items. This is significantly lower than the $0.93 per share most analysts were expecting. The Company also stated that credit segment provision for bad debts as a percentage of the average outstanding portfolio balance is expected to exceed previously issued full-year fiscal 2014 guidance.
Our investigation will center on statements issued by Conns regarding its business, operations, valuation, prospects and provisions for bad debts. Our investigation seeks to determine if these statements were known to be materially false and misleading at the time they were made, and if certain insiders disposed of their personally held stock while in possession of adverse, non-public information.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
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