Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against EZCORP, Inc.
July 21, 2015
Bernstein Liebhard LLP announces that a class action has been commenced in the United States District Court for the Western District of Texas on behalf of purchasers (the “Class”) of EZCORP, Inc. (“EZCORP” or the “Company”) (Nasdaq: EZPW) securities between October 27, 2014 and July 16, 2015 (the “Class Period”) alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
EZCORP delivers cash solutions to customers across channels, products, services and markets. With approximately 1,400 locations and branches, the Company offers customers multiple ways to access instant cash, including pawn loans and consumer loans in the United States, Mexico, Canada and the United Kingdom.
The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose, among others: (1) that the Company improperly recognized particular structured assets sales; (2) that the Company improperly classified certain loans; (3) that, as a result, the Company overstated its gains on assets sales and accrued interest revenue; (4) that, as such, the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the foregoing, defendants’ statements were materially false and misleading at all relevant times.
On April 30, 2015, the Company announced a delay in its earnings release for the second quarter of fiscal 2015 due to an ongoing review of the Company’s Grupo Finmart loan portfolio.
On this news, shares of EZCORP declined $0.79 per share, or 8.59%, to close at $8.41 on May 1, 2015.
On July 17, 2015, the Company announced that it would restate its financial statements for fiscal 2014 (including the interim periods, within that year) and the first quarter of fiscal 2015, and that the previously issued financial statements for those periods should no longer be relied upon.
On this news, shares of EZCORP declined $0.26 per share, nearly 4%, to close at $6.48 on July 17, 2015.
Plaintiffs seek to recover damages on behalf of all Class members who purchased EZCORP securities during the Class Period. If you purchased EZCORP securities as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than September 18, 2015.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an EZCORP shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of California.