NEW YORK, Jan. 24, 2022 (GLOBE NEWSWIRE) — Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal security class action lawsuit has been filed against FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (NASDAQ: FCFS) in the United States District Court for the Northern District of Texas on behalf of all persons and entities who purchased or otherwise acquired FirstCash securities between February 1, 2018 and November 12, 2021, both dates inclusive (the “Class Period”).
All investors who purchased the shares of FirstCash Holdings, Inc. and losses incurred are requested to contact the company immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You can get additional information about the action or join the case on our website, www.whafh.com.
If you have suffered losses in FirstCash Holdings, Inc., you can, no later than March 15, 2022, ask the Court to name you as the lead plaintiff in the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in FirstCash Holdings, Inc.
CLICK HERE TO SUBMIT BUSINESS INFORMATION AND JOIN THE CASE
In September 2016, the company, then known as First Cash Financial Services Inc., completed its merger with pawnbroker and payday lender Cash America International, Inc. (“Cash America”). Following the merger, the combined company changed its name to FirstCash Inc. Similarly, following a December 2021 merger with lending company American First Finance, the company changed its name again to FirstCash Holdings, Inc.
The Military Loans Act (“MLA”) provides protections for active duty military members and their dependents under the extension of consumer credit. Among other protections, the MLA limits the interest rates that can be charged on consumer loans to active duty members of the armed forces and their covered dependents to a maximum of 36%. In addition, the MLA prohibits lenders from requiring covered parties to submit to arbitration, as well as from imposing other limitations.
In November 2013, Cash America entered into a consent order with the Consumer Financial Protection Bureau (“CFPB”) for making loans to covered service members or their dependents in violation of the MLA, violations related to the recovery of receivables, failure to prevent or detect in a timely manner problematic behavior due to inadequate internal compliance and failure to maintain required records (the “Order”). In the Order, Cash America agreed to cease and desist from violations and to implement a plan designed to ensure its 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 provide relief to affected consumers.
In 2015, the Department of Defense expanded the MLA to cover more credit products, including pawnbrokers. Newly covered creditors, including pawnbrokers, had until October 3, 2016 to bring their operations into compliance with the new rules.
In response to the expansion of the MLA, which prohibited the Company from issuing loans with interest rates above 36%, FirstCash asserted that it was “unable to offer any of its current credit products, including pawnbrokers, to members of the United States military or their dependents.” The Company also asserted throughout the Class Period that it employed robust systems, policies and procedures to ensure regulatory compliance and adherence to applicable laws, rules and regulations governing its business, including including MLA.
On November 12, 2021, the CFPB filed a lawsuit alleging that FirstCash and its subsidiary, Cash America West, Inc., violated the MLA by charging more than the allowable annual percentage rate of 36% on more than 3,600 loans on pledge to more than 1,000 assets. -service service members and their dependents. The CFPB also alleged that FirstCash violated the CFPB’s 2013 order prohibiting future violations of the MLA, which remained in effect and applied to FirstCash after the company merged in September 2016.
and First Cash America.
Following these revelations, FirstCash’s stock price fell more than $7 per share, or 8%, in a single day to close at $78.64 per share on November 12, 2021 on trading volume abnormally high.
The stock continued to decline in the following days as the market digested the news, losing another $10 per share by November 18, 2021.
Wolf Haldenstein has extensive experience in prosecuting securities class action and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. This firm’s reputation and expertise in shareholder litigation and other class actions have been repeatedly recognized by the courts, which have appointed it to major positions in complex, multi-district and consolidated securities litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please contact Wolf Haldenstein immediately by phone at (800) 575-0735, by email at [email protected], or visit our site Web at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Business and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774
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