THE PLAINTIFF’S PERIOD IS MARCH 15, 2022
NEW YORK, Jan. 18, 2022 (GLOBE NEWSWIRE) — Wolf Haldenstein Adler Freeman & Herz LLP announces that FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (NASDAQ : FCFS) has filed a filing with the United States District Court for the Northern District of Texas on behalf of all individuals and entities that purchased or otherwise acquired FirstCash securities between February 1, 2018 and November 12, 2021, both dates inclusive (the “Collection Period”).
All investors who bought the shares of First Cash Holdings, Inc. and any losses incurred are urged to contact the law firm immediately [email protected] or (800) 575-0735 or (212) 545-4774. You can get additional information about the promotion or join the case on our website, www.whafh.com.
If you’ve suffered losses at FirstCash Holdings, Inc., you can by March 15, 2022 at the latest, request that the court appoint you lead plaintiff in the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in FirstCash Holdings, Inc.
CLICK HERE TO SUBMIT TRADE INFORMATION AND JOIN THE CASE
In September 2016, the company, then known as First Cash Financial Services Inc., completed its merger with pawn shop and payday lender Cash America International, Inc. (“Cash America”). Following the merger, the merged company changed its name to FirstCash Inc. Similarly, following a merger with lending firm American First Finance in December 2021, the company changed its name again to FirstCash Holdings, Inc.
The Military Lending Act (“MLA”) provides protections for active duty members and their dependents in connection with the provision of consumer credit. Among other safeguards, the MLA limits the interest rate that can be charged on consumer loans to active-duty military personnel and their insured dependents to no more than 36%. In addition, the MLA prohibits lenders from requiring affected parties to submit to arbitration and imposing other restrictions.
In November 2013, Cash America entered into a consent order with the Consumer Financial Protection Bureau (“CFPB”) for providing credit to insured military personnel or their dependents in violation of the MLA, violations related to debt collection, failure to prevent or timely identify problematic behavior due to insufficient internal compliance and failure to maintain required records (the “Assignment”). In the order, Cash America agreed to cease and desist from the violations and to implement a plan designed to ensure future compliance with the terms of the order. The CFPB fined Cash America $5 million and ordered it to deposit $8 million into an account to redress affected consumers.
In 2015, the Department of Defense expanded the MLA to cover more lending products, including pawn loans. Newly covered creditors, which included pawnbrokers, had until October 3, 2016 to adjust their operations to the new rules.
In response to the MLA’s extension that prohibited the company from lending at interest rates higher than 36%, FirstCash claimed it did “unable to offer any of its current lending products, including pawn loans, to members of the US military or their dependents.” The company also alleged that during the class action period it employed robust systems, policies and procedures to ensure legal compliance and compliance with applicable laws, rules and regulations for its business, including the MLA.
On November 12, 2021, the CFPB filed a lawsuit alleging that FirstCash and its subsidiary Cash America West, Inc. violated the MLA by charging a higher than allowable effective lien on over 3,600 mortgage loans from more than 1,000 assets would have charged annual interest of 36% – those on duty and their dependents. The CFPB also alleged that FirstCash violated the 2013 CFPB regulation prohibiting future MLA violations, which remained in effect and applied to FirstCash after the company’s merger with First Cash America in September 2016.
As a result of these revelations, FirstCash stock price plunged over $7 per share, or 8%, in a single day to close at $78.64 per share on November 12, 2021 on unusually high trading volume.
The stock continued to fall over the following days as the market digested the news, falling another $10 per share by November 18, 2021.
Wolf Haldenstein has extensive experience pursuing securities class actions and derivatives disputes in state and federal courts and appellate courts across the country. The firm has attorneys in various areas of law; and offices in New York, Chicago and San Diego. This firm’s reputation and expertise in shareholder and other class actions has been recognized repeatedly by the courts, which have assigned it significant positions in complex multiple district and consolidated securities disputes.
If you would like to discuss this action, or have any questions about your rights and interests in this matter, please contact Wolf Haldenstein immediately by phone at (800) 575-0735 or email [email protected] or visit our website at www.whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Head of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774
This press release may be considered an attorney’s advertisement in some jurisdictions under applicable laws and ethics rules.
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