Law
Offices of Howard G. Smith announces that it is investigating
potential claims on behalf of investors of World Acceptance Corporation
(“World Acceptance Corp.” or the “Company”) (NASDAQ:WRLD) concerning
possible violations of federal securities laws. The investigation
focuses on the Company’s business and operations.
World Acceptance Corp. engages in small-loan consumer finance business
in the United States and Mexico. The Company’s products include
short-term and medium-term loans, related credit insurance, and
ancillary products and services. The investigation is related to the
Company’s Form 8-K filed March 13, 2014, with the Securities and
Exchange Commission, disclosing that on March 12, 2014, World Acceptance
Corp. received a Civil Investigative Demand (“CID”) from the U.S.
Consumer Financial Protection Bureau (“CFPB”).
According to the Company, the purpose of the CFPB investigation is to
determine “whether finance companies or other unnamed persons have been
or are engaging in unlawful acts or practices in connection with the
marketing, offering, or extension of credit” in violation of certain
sections of the Consumer Financial Protection Act, the Truth in Lending
Act, or any other Federal consumer financial law. The investigation also
seeks to determine “whether Bureau action to obtain legal or equitable
relief would be in the public interest.” The Company further disclosed
that the CID contains “broad requests for production of documents,
answers to interrogatories and written reports related to loans made by
the Company and numerous other aspects of the Company’s business.”
Following this news, the price of World Acceptance Corp. stock dropped
as much as 19% below the previous day’s closing price, in intraday
trading on March 13, 2014
If you purchased World Acceptance Corp. shares between February 8, 2013
and March 12, 2014, if you have information or would like to learn more
about these claims, or if you have any questions concerning this
announcement or your rights or interests with respect to these matters,
please contact Howard G. Smith, Esquire, of Law Offices of Howard G.
Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by
telephone at 215-638-4847, Toll-Free at 888-638-4847, or by email to howardsmith@howardsmithlaw.com,
or visit our website at www.howardsmithlaw.com.
Copyright Business Wire 2014