The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of those who purchased the common stock and/or call options or sold/wrote the put options of Conn’s, Inc. (“Conn’s” or the “Company”) (NasdaqGS: CONN), between April 3, 2013 and February 19, 2014, inclusive (the “Class Period”). If you purchased the common stock and/or call options or sold/wrote the put options of Conn’s during the Class Period, you may move the Court for appointment as lead plaintiff by no later than May 5, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action. Conn’s investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358. Background on the Conn’s Securities Class Litigation The actions charge Conn’s and certain of its officers and directors with violations of the Securities and Exchange Act of 1934. Conn’s, based in The Woodlands, Texas, is a specialty retailer of home appliances, furniture, mattresses, and consumer electronics, and a provider of consumer credit. The actions allege that during the Class Period, defendants issued false and misleading statements or failed to disclose material adverse facts regarding Conn’s business and prospects. Specifically, defendants allegedly misrepresented and failed to disclose that (1) the Company was increasing its business and financial results by using underwriting and collections practices that weakened Conn’s portfolio quality and left it vulnerable to substantial increases in bad debt; (2) Conn’s was experiencing rising delinquencies at a substantially different rate than it was representing to public; and (3) Conn’s credit segment practices substantially threatened the Company’s financial performance.
On September 5, 2013 Conn’s disclosed that the performance of its credit segment for the second quarter of fiscal 2014 was below expectations due to execution issues in its collection operations. The Company stated that after corrective actions were taken, negative delinquency trends rapidly reversed. On this news, Conn’s stock price fell $7.95 per share, or nearly 12%, to close at $60.36 per share on September 5, 2013.On February 20, 2014, Conn’s issued a press release announcing its preliminary fourth quarter of fiscal 2014 results. Conn’s disclosed that its “[c]redit 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,” and that the “percentage of the customer portfolio balance 60-plus days delinquent was 8.8% at January 31, 2014, an increase of 30 basis points from October 31, 2013.” The Company also reduced its fiscal 2015 earnings guidance. On this news, the price of Conn’s common stock fell $23.91 per share, or 42.85%, from its closing price of $55.80 per share on February 19, 2014 to close at $31.89 on February 20, 2014, on exceptionally heavy trading volume. About Lieff Cabraser Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. The National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation for eleven years. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eleven consecutive years. For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.