Philadelphia, Pennsylvania--(Newsfile Corp. - February 7, 2022) - Berger Montague is investigating securities fraud allegations on behalf of investors who purchased the securities of FirstCash Holdings, Inc. ("FirstCash" or the "Company") (NASDAQ: FCFS) between February 1, 2018 and November 12, 2021 (the "Class Period").
If you purchased FirstCash securities during the Class Period, would like to discuss Berger Montague's investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Michael Dell'Angelo at mdellangelo@bm.net or (215) 875-3080.
Whistleblowers: Anyone with non-public information regarding FirstCash is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
FirstCash owns and operates pawn stores in the United States and Latin America. In September 2016, FirstCash finalized its merger with pawnshop provider and payday lender Cash America International, Inc. In November 2013, Cash America entered into a Consent Order with the Consumer Financial Protection Bureau ("CFPB") for making loans to covered members of the military or their dependents in violation of the Military Lending Act ("MLA"). The CFPB fined Cash America $5 million and ordered it to deposit $8 million into an account in order to provide redress to affected consumers.
According to a recently filed lawsuit, FirstCash failed to disclose that it had made more than 3,600 loans to over 1,000 active-duty members of the military and their families at usurious interest rates above 36% - often exceeding 200% - in violation of the MLA and the Order. As a result, the Company's financial results were artificially inflated, and, moreover, FirstCash was exposed to a material undisclosed risk of legal and financial harm if FirstCash's violations of the MLA and the Order were ever publicly disclosed.
On November 12, 2021, the CFPB announced that it had filed a complaint against FirstCash for violations of the MLA and the Order. A CFPB release stated that FirstCash had "cheated" and "gouged" military families and "robbed them of their rights to go to court."
On this news, the price of FirstCash common stock declined 28% over the next two trading days.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Michael Dell'Angelo, Executive Shareholder
Berger Montague
(215) 875-3080
mdellangelo@bm.net
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/112999
