Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In Regional Management Corporation (RM) To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Regional Management Corporation (“Regional” or the “Company”) (NYSE: RM) of the July 29, 2014 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against Regional and certain executives and directors of the Company and venture capital backers of the Company.
A complaint has been filed in the Southern District of New York on behalf of all persons who purchased Regional common stock pursuant to the Registration Statement issue in connection with Company’s September 20, 2013 and December 5, 2013 secondary public offerings (the “Offerings”) (the “Class Period”).
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
The complaint alleges that the Registration Statement and Prospectuses used to effectuate the Offerings failed to adequately disclose the Company’s (a) increasing deterioration of underwriting standards, leading to higher percentages of delinquencies and loan charge-offs; (b) failure to adequately reserve for loan losses; and (c) repeated debt refinancing tactics used to increase loan amounts and interest rates, a practice the U.S. Consumer Finance Protection Bureau was then actively investigating and clamping down on. In addition, defendants misstated the Company’s fourth quarter and fiscal 2012 financial reports and failed to report defects in its internal controls.
As these unscrupulous tactics and false financial statements came to light, the stock price declined approximately 50% from what the Offerings were priced at just months earlier.
If you invested in Regional stock or options in connection with the Company’s Offerings and would like to discuss your legal rights, you can contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Regional’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
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