NEW YORK (TheStreet) -- World Acceptance Corp. (WRLD) stock is plunging -8.85% to $70.14 after KPMG L.L.P. informed the Greenville-based consumer finance company that it would not respond to its request for a proposal to serve as the company's accounting firm.
In KPMG's Aug. 29 filing letter to the SEC, the firm said its previous audit reports of World Acceptance's financial statements for the years ended March 31, 2013 and 2014 did not contain any disagreement of opinions or changes due to uncertainty in accounting principles or audit scope.
World Acceptance said it's in the final stages of selecting a new firm, but is currently being investigated by U.S. regulators to determine if consumer protection laws had been broken.
The company is also facing shareholder allegations that it violated federal securities laws, but World Acceptance said these allegations have no merit and "intends to vigorously defend itself."
About 1.02 million shares of World Acceptance were traded by 1:06 p.m., compared to an average trading volume of about 130,700 shares a day.
Separately, TheStreet Ratings team rates WORLD ACCEPTANCE CORP/DE as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WORLD ACCEPTANCE CORP/DE (WRLD) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."