This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Attention Conn's, Inc. Investors: Conn's Misled Investors According To A Recently Filed Class Action

Stocks in this article: CONN

SAN DIEGO and THE WOODLANDS, Texas, March 10, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Conn's, Inc. (NASDAQ: CONN) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of Texas.  The complaint alleges that the company and certain of its officers and directors violated the Securities and Exchange Act of 1934 between April 3, 2013 and February 19, 2014 (the "Class Period").  Conn's is a retailer of durable consumer products, including appliances, furniture, and mattresses in the United States.

Robbins Arroyo LLP.

Conn's Is Accused of Misleading Investors About Company's Susceptibility to Bad Debt

According to the complaint, shares of Conn's fell $23.91 per share, or over 42%, to close at $31.89 on February 20, 2014.  The fall in Conn's share price came in reaction to a press release announcing the company's diluted earnings per share for its fiscal 2014 fourth quarter was below the company's previously issued full-year fiscal 2014 guidance, and that its 2015 fiscal guidance would be lowered.  The complaint alleges that the earnings decline resulted from higher than anticipated account receivable charge-offs and delinquency rates during the quarter, requiring Conn's to take increased provisions for bad debt.  Specifically, Conn's loan portfolio delinquency rate for customers 60-days delinquent increased 30 basis points during its fiscal 2014 fourth quarter to 8.8% at January 31, 2014.

The complaint further alleges that Conn's concealed from investors that the company's growth was based on underwriting and business practices that weakened portfolio quality and threatening the company's financial performance. As a result, Conn's statements regarding financial performance and expected earnings in 2014 and 2015 were materially false and misleading throughout the Class Period.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,240.56 +49.19 0.29%
S&P 500 1,994.81 -7.35 -0.37%
NASDAQ 4,617.8580 -20.1360 -0.43%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs