Kirby McInerney LLP announces the filing of
NEW YORK, Jan. 18, 2022 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP Reminds investors that a class action lawsuit was filed in the United States District Court for the Northern District of Texas on behalf of those who purchased common stock of FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (NASDAQ: FCFS) 1. February 2018 through November 12, 2021 (the “Class Period”). Investors have until March 15, 2022 to petition the court to be named lead plaintiff in the lawsuit.
FirstCash owns and operates pawn shops in the United States and Latin America. Through its pawn shops, FirstCash offers non-recourse pawn loans and purchases goods from customers to enable them to meet short-term cash needs.
In September 2016, FirstCash completed its merger with pawn shop and payday lender Cash America International, Inc. (“Cash America”). In November 2013, Cash America entered into a Consent Order with the Consumer Financial Protection Bureau (“CFPB”) for lending to insured military personnel or their dependents in violation of the Military Lending Act (“MLA”), Collections-Related Violations, Default , preventing or identifying in a timely manner problematic behavior due to insufficient internal compliance, and failure to maintain required records (the “Mission”). 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 the affected consumers.
On November 12, 2021, the CFPB announced that it had filed a complaint against FirstCash for violations of the MLA and the Order. The CFPB complaint alleged that “[b]between June 2017 and May 2021 (the only period for which the FBI currently has Defendants’ transaction data), [FirstCash and its subsidiary Cash America West, Inc.] collectively issued more than 3,600 mortgage loans to more than 1,000 secured borrowers from businesses in Arizona, Nevada, Utah and Washington.” The CFPB found that FirstCash charged interest rates in excess of 36% on all of the loans in question, with rates often exceeding 200%. In addition, the CFPB found that FirstCash’s usurious lending practices had continued in violation of the order since at least October 2016. A CFPB publication detailing the agency’s actions against FirstCash said FirstCash had “cheated” and “outstabbed” military families and “deprived them of their right to go to court.” As a result of this news, FirstCash’s stock price fell $7.50 per share, or approximately 8.7%, from $86.14 per share to a closing price of $78.64 per share on November 12, 2021.
The lawsuit alleges that during the class period, the defendants made false and misleading statements and failed to disclose the following: (i) FirstCash made more than 3,600 loans to over 1,000 active duty military personnel and their families at exorbitant interest rates in excess of 36%. – and often more than 200% – in violation of the MLA and the Order; (ii) FirstCash failed to implement the remedies required by the Order; (iii) FirstCash’s financial results were in substantial part the product of FirstCash’s violations of the MLA and the Order; and (iv) as a result, FirstCash faced a material, undisclosed risk of legal, reputational and financial damage if FirstCash’s violations of the MLA and the Order were ever to become public knowledge.
If you have purchased or otherwise acquired FirstCash securities, have information, or would like to learn more about these claims, please contact Thomas W Elrod from Kirby McInerney LLP at 212-371-6600, by email at [email protected], or by completing this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm focused on securities, antitrust, whistleblower and consumer litigation. The firm’s efforts on behalf of shareholders in securities disputes have resulted in recoveries totaling billions of dollars. For more information about the firm, visit Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered an attorney’s advertisement in some jurisdictions under applicable laws and ethics rules.
Kirby McInerney LLP
Thomas W. Elrod, Esq.