Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In Rent-A-Center, Inc. To Contact The Firm Before Lead Plaintiff Deadline
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Rent-A-Center, Inc. (“Rent-A-Center” or the “Company”) (NASDAQ:RCII) of the February 21, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Eastern District of Texas on behalf of all those who purchased Rent-A-Center securities between July 27, 2015 and October 10, 2016 (the “Class Period”). The case, Hall v. Rent-A-Center, Inc. et al, No. 4:16-cv-00978 was filed on December 23, 2016, and has been assigned to Judge Amos Louis Mazzant III.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements, as well as failed to disclose: (1) that the Company could not properly implement its new point of sale system (“POS”); (2) that the POS was performing extremely poorly; (3) that as a result, the Company’s Acceptance Now credit system could not be correctly implemented; (4) that the Company could not meet revenue and profitability guidance, and would need to revise its prior guidance; and (5), as a result, the Company’s statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
Specifically, on October 11, 2016, the Company issued a press release announcing dismal financial results for third quarter 2016. Therein, the Company disclosed that it “estimates Core U.S. same store sales for the three months ended September 30, 2016 to be down approximately 12%, and Acceptance Now same store sales to be essentially flat.” In addition, the Company announced the aforementioned issues regarding its implementation of the new POS.
On this news, Rent-A-Center’s share price fell from $12.88 per share on October 10, 2016 to a closing price of $9.18 on October 11, 2016—a $3.70 or a 28.73% drop.
If you invested in Rent-A-Center stock or options between July 27, 2015 and October 10, 2016 and would like to discuss your legal rights, please fill out the form below. You can also 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 Rent-A-Center’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Please tell us about yourself by completing the form and we will provide you with additional
information on how to join the Class Action at no cost to you.
* The submission of this form does not create an attorney-client relationship.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.