Rent-A-Center Inc (NASDAQ:RCII) Investor Securities Class Action Lawsuit 12/23/2016
December 23, 2016 (Shareholders Foundation) - An investor in shares of Rent-A-Center Inc (NASDAQ:RCII) filed a lawsuit in the U.S. District Court for the Eastern District of Texas over alleged violations of Federal Securities Laws by Rent-A-Center Inc in connection with certain allegedly false and misleading statements made between July 27, 2015, and October 10, 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of Rent-A-Center Inc (NASDAQ:RCII) common shares between July 27, 2015, and October 10, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between July 27, 2015, and October 10, 2016, the Defendants failed to disclose that Rent-A-Center could not properly implement its new point of sale system (“POS”), that, the POS was performing extremely poorly, including several instances where the system suffered complete outages, that as a result, the Company’s Acceptance Now credit system could not be implemented properly, that the Company could not meet revenue and profitability guidance provided to investors, that, as such, the Company would need to revise its prior guidance, and that, as a result of the foregoing, Defendants’ statements about Rent-A-Center’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
Rent-A-Center Inc reported that its annual Total Revenue rose from over $3.15 billion in 2014 to over $3.27 billion in 2015 while its Net Income of $96.42 million in 2014 declined to a Net Loss of $866.63 million in 2015.
On July 28, 2016, Rent-A-Center Inc announced that issues with its new Point-of-Sale (“POS”) system were fixed and alleviated.
On October 11, 2016 Rent-A-Center Inc announced it was experiencing issues with the POS system which would have a negative effect on its sales.
On December 23, 2016, NASDAQ:RCII shares closed at $11.54 per share.