DFC Global Corp (NASDAQ: DLLR) Investor Securities Class Action Lawsuit 11/20/2013

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Company Name(s): 
DFC Global
Case Name: 
DFC Global Shareholder Class Action Lawsuit 11/20/2013
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: DLLR
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/20/2013
Class Period Begin: 
01/28/2011
Class Period End: 
02/03/2014
Court of Filing: 
U.S. District Court for the Eastern District of Pennsylvania
Deadline To File for Lead: 
01/20/2014
Date Settled: 
03/08/2017
Settlement Amount: 
$30,000,000
Deadline to Participate in Settlement: 
09/04/2017
Settlement Notice: 
Settlement Proof: 
Summary: 

September 20, 2017 - The court approved the settlement.

March 8, 2017 - The court preliminarily approved the settlement.

February 28, 2017 - Parties filed a stipulation of settlement.

June 16, 2015 - The court denied defendants' motions to dismiss.

October 3, 2014 - Defendants filed motions to dismiss.

July 21, 2014 - The lead plaintiffs filed an amended consolidated complaint on behalf of investors who purchased DFC Global Corp (NASDAQ: DLLR) common shares between January 28, 2011 and February 3, 2014. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between January 28, 2011 and February 3, 2014.

April 22, 2014 - All cases were consolidated.

April 10, 2014 - The lead plaintiffs and lead counsel were appointed.

January 21, 2014 - Lead plaintiff motions were filed.

November 20, 2013 - An investor in shares of DFC Global Corp (NASDAQ: DLLR) filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against DFC Global Corp over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between January 28, 2011 and August 22, 2013.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired DFC Global Corp (NASDAQ: DLLR) between January 28, 2011 through August 22, 2013, that DFC Global Corp and certain of its senior executives violated the Securities Exchange Act of 1934.

More specifically, the plaintiff alleges that between January 28, 2011 through August 22, 2013, DFC Global Corp misrepresented to investors that it complied with government regulations and guidance with regard to irresponsible lending practices in the United Kingdom ("U.K."), and that DFC Global Corp made conservative underwriting decisions when making loans. Furthermore, the plaintiff claims that DFC Global Corp also knowingly understated its loss rates for loans, and issued false earnings guidance for its 2013 fiscal year.

On April 1, 2013, DFC Global Corp announced selected, preliminary financial results for the fiscal third quarter ended March 31, 2013. Among other things, DFC Global Corp lowered its fiscal 2013 diluted operating earnings guidance.

Shares of DFC Global Corp (NASDAQ: DLLR) declined from $16.64 per share on March 28, 2013, to $13.04 per share on April 1, 2013.

On May 10, 2013, DFC Global Corp announced its financial results for the first quarter 2013. Among other things, DFC Global Corp said that during the three months ended March 31, 2013, it identified interim impairment indicators at its DFS reporting unit and performed an interim impairment test of its goodwill, indefinite-lived intangible asset and certain other intangible assets. DFC Global Corp said that the impairment indicators resulted principally from the examination performed by the Consumer Financial Protection Bureau (“CFPB”) during the fiscal year ending June 30, 2013, which delayed DFC Global Corp’s negotiations with potential lending partners, and other possible funding arrangements, to replace the current third-party national bank that funds a majority of the MILES program loans. DFC Global Corp also said it has been informed by the CFPB that it intends to initiate an administrative proceeding against DFC Global Corp relating to its marketing of certain vehicle service and insurance products and to the requirement that MILES program loans be repaid via a military allotment.

Then on August 22, 2013, DFC Global Corp announced its fiscal fourth quarter and full-year 2013 results. DFC Global Corp reported that its Total Revenue rose from over $1.06 billion for the 12 months period that ended on June 30, 2012 to over $1.12 billion for the 12 months period that ended on June 30, 2013 while its Net Income of $52.40 million for the 12 months period that ended on June 30, 2012 declined to a Net loss of $0.70 for the 12 months period that ended on June 30, 2013.

DFC Global Corp also issued its fiscal year 2014 outlook. Among other things, the executive Vice President and Chief Financial Officer of DFC Global Corp said that the company expects to incur approximately $10.0 million to $15.0 million of expense in fiscal 2014 to support ongoing regulatory related activities, including regulatory advisory costs, legal opinions and analysis, and audit and regulatory compliance costs in fiscal 2014.

Shares of DFC Global Corp (NASDAQ: DLLR) dropped from $15.90 per share on August 22, 2013, to $11.02 per share on August 27, 2013.

Shares of DFC Global Corp (NASDAQ: DLLR) closed on May 20, 2013 at $15.22 per share.