FCFS ALERT: Robbins Geller Rudman & Dowd LLP Files Class Action Lawsuit Against FirstCash Holdings, Inc. and Announces Opportunity for Investors with Substantial Losses to Lead Case
SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that between February 1, 2018 and November 12, 2021, both dates including ( the “Collection Period”) and charges against FirstCash and certain of its top officers for violations of the Securities Exchange Act of 1934. The FirstCash class action commenced on January 14, 2022 in the Northern District of Texas, titled Genesee County Employees’ Retirement System v FirstCash Holdings, Inc., No. 22-cv-00033.
The plaintiff is represented by Robbins Geller, who has extensive experience pursuing class action lawsuits brought by investors, including financial fraud claims. You can view a copy of the complaint by clicking here.
If you have suffered significant losses and would like to appear as a lead plaintiff in the FirstCash Class Action, please provide your information by clicking here. You may also contact Attorney JC Sanchez of Robbins Geller by phone at 800/449-4900 or email at firstname.lastname@example.org. Lead plaintiff motions for the FirstCash class action must be filed with the court no later than March 15, 2022.
CASE CLAIMS: 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.
The FirstCash class action alleges that throughout 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 usury interest rates in excess of 36% – and often over 200% – in violation of the MLA and regulation; (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.
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 “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 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, the price of FirstCash common stock fell about 28% over the next two trading days, hurting investors.
REMAINING PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased FirstCash common stock during the Class Period to seek appointment as the lead plaintiff in the FirstCash Class Action. A lead plaintiff is generally the claimant who has the greatest financial interest in the remedy sought by the alleged class that is also typical and appropriate for the alleged class. A lead plaintiff acts on behalf of all other group members in directing the FirstCash class action. The Lead Plaintiff may select a law firm of its choice to conduct the FirstCash Class Action. An investor’s ability to participate in a potential future recovery of the FirstCash class action is not contingent upon its serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest US law firm representing investors in securities class actions. Robbins Geller’s attorneys have secured many of the largest shareholder recoveries in history, including the largest securities class action recovery of all time — $7.2 billion — in relation to Enron Corp. sec. Lig. In the 2020 ISS Securities Class Action Services Top 50 report, Robbins Geller was ranked first for recovering $1.6 billion for investors this year, more than double the amount recovered by any other firm was reclaimed by securities plaintiffs. Visit http://www.rgrdlaw.com for more information.
Past results do not guarantee future results.
Services can be provided by lawyers in any of our offices.