Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of Aarons Inc. (“Aarons” or the “Company”) (NYSE: AAN) between March 2, 2018, and February 19, 2020.
If you purchased Aarons Inc. Securities and/or wish to discuss your legal rights and options please click “Join Class Action” above.
New York, New York — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of Aarons Inc. (“Aarons” or the “Company”) (NYSE: AAN) between March 2, 2018, and February 19, 2020 (the “Class Period”). The lawsuit filed in the United States District Court for the Southern District of New York alleges violations of the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: ((i) that Aaron’s had inadequate disclosure controls, procedures, and compliance measures; (ii) that, consequently, the operations of Aaron’s Progressive and AB segments were in violation of the FTC Act and/or relevant FTC regulations; (iii) that, consequently, Aaron’s earnings from those segments were partially derived from unlawful business practices and were thus unsustainable; (iv) the full extent of Aaron’s liability regarding the FTC’s investigation into its Progressive and AB segments, Aaron’s noncompliance with the FTC Act, and the likely negative consequences of all the foregoing on the Company’s financial results; and (v) that, as a result, the Company’s public statements were materially false and misleading at all relevant times.
On July 26, 2018, during after-market hours, Aaron’s filed a Quarterly Report on Form 10-Q with the SEC, reporting the Company’s financial and operating results for the fiscal quarter ended June 30, 2018. That Quarterly Report disclosed that, in July 2018, Aaron’s received civil investigative demands (“CIDs”) from the FTC requesting the production of documents and answers to written questions to determine whether disclosures related to financial products offered by the Company through its AB and Progressive segments were in violation of the FTC Act.
On this news, Aaron’s stock price fell $5.38 per share, or 11.01% to close at $43.47 per share on July 27, 2018.
Then, on February 20, 2020, Aaron’s issued a press release announcing the Company’s financial results for the quarter and year ended December 31, 2019. Among other results, Aaron’s reported that the Company’s Progressive segment had reached an agreement in principle with FTC staff regarding the CID from the FTC that Progressive received in July 2018. Aaron’s advised investors that “[u]nder the proposed agreement, which requires final approval by FTC Commissioners and the U.S. District Court for the Northern District of Georgia, Progressive will make a payment of $175 million and enhance certain compliance-related activities, including monitoring, disclosure and reporting requirements.”
On this news, Aaron’s stock price fell $10.70 per share, or 19.06%, to close at $45.45 per share on February 20, 2020.
If you wish to serve as lead plaintiff, you must move the Court no later than April 28, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Matthew E. Guarnero
Bernstein Liebhard LLP