Faruqi & Faruqi, LLP’s national practice focuses on complex civil litigation. The firm practices in the areas of Securities, Merger & Transactional, Shareholder Derivative, Antitrust, Consumer Class Action, and Wage & Hour litigation.
Friday, July 24, 2015
Faruqi & Faruqi Alert: EZCORP, Inc.
Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In EZCORP, Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in EZCORP, Inc. (“EZCORP” or the “Company”) (NASDAQGS: EZPW) of the September 18, 2015 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the United States District Court for the Western District of Texas on behalf of a class consisting of all persons or entities who purchased EZCORP securities between October 27, 2014 and July 16, 2015.
The complaint alleges that the Company and its executives violated federal securities laws by failing to disclose that the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles. Specifically, the Company improperly recognized particular structured asset sales and certain loans which overstated its gains on asset sales and accrued interest revenue. The Company’s accounting misrepresentations first came to light in a report released by the Company on April 30, 2015, in which it 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, an 8.59% drop, to close at $8.41 on May 1, 2015.
Then, on May 20, 2015, after the market closed, the Company revealed that, while review of the Grupo Finmart loan portfolio was still ongoing, management and the Audit Committee would likely conclude that the Company had a material weakness in internal controls over financial reporting and deficiencies in its disclosure controls and procedures. On this news, shares of EZCORP declined $0.66 per share, a 7.59% drop, to close on May 21, 2014, at $8.33 per share, on unusually heavy volume.
Finally, 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. After this news, shares of EZCORP fell $0.26 per share, a 3.86% drop, to close at $6.48 on July 17, 2015.
If you invested in EZCORP stock or options between October 27, 2014 and July 16, 2015 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding EZCORP’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.