Block & Leviton LLP Investigates Conn's Inc. for Possible Violations of the Federal Securities Laws
BOSTON, Dec. 9, 2014 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations by Conn's Inc. ("Conn's" or the "Company") (NASDAQ: CONN) following the Company's announcements that its CFO Brian Taylor was stepping down immediately following losses at the Company and that "[c]ustomer credit scores continue to deteriorate." The disclosures also led Canaccord Genuity's Laura Champine to state that her confidence in the Company was "shattered."
More specifically, Conn's announced that it was planning on enacting changes to its management structure in an attempt to recoup losses from its credit-financing business. The median analyst projection for the Company's fiscal third quarter of 2015 was earnings of $0.68 per share. Instead, Conn's announced losses of $.08 per share.
Conn's also announced several new initiatives by its Board of Directors intended to enhance oversight while management contends "with a combination of rapid portfolio growth and a more difficult credit collection environment." In particular, Conn's announced that "the performance of the Company's credit operations has been disappointing … [and] that its credit operations forecasting has not been acceptably accurate." To help address these challenges, the Board of Directors has established a Credit Risk and Compliance Committee and approved two new positions to augment its management team, a president and a chief risk officer.
The market reacted immediately to these announcements, causing Conn's share price to trade as low as $19.57 on December 9, 2014, establishing a new 52-week low for the Company. In addition to significantly lower than expected per share results, Conn's also withdrew its guidance for the remainder of fiscal 2015 and all of fiscal 2016.
Block & Leviton's investigation seeks to determine, among other things, whether Conn's or its officers and directors violated the federal securities laws by artificially and materially inflating its financial results. If you purchased Conn's securities prior to December 9, 2014, and have any information relevant to this investigation, or have questions about your legal rights, please contact attorney Steven Harte of Block & Leviton LLP at (617) 398-5600 or email him at [email protected]. Confidentiality to whistleblowers or others with information relevant to the lawsuit is assured.
This notice may constitute attorney advertising.
Contact:
BLOCK & LEVITON LLP
Steven Harte, Esq.
(617) 398-5600
[email protected]
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/block--leviton-llp-investigates-conns-inc-for-possible-violations-of-the-federal-securities-laws-300007201.html
SOURCE Block & Leviton LLP
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