A law office recently announced that a securities class action lawsuit was filed against a consumer finance company due to potential violations of federal securities laws.
Robbins Arroyo, LLP, noted that the litigation was filed in the U.S. District Court for the Southern District of New York against Regional Management Corp. This includes all shareholders who purchased stock on Sept. 20, 2013, when it was offered at $27.50 per share, as well as Dec. 5, 2013, when it was $31 per share.
The lawsuit alleged that the company's leaders violated the Securities Exchange Act of 1933 due to the two offerings. Specifically, the company's stock fell by close to 50 percent by May 30, 2014. The company may have known and did not inform shareholders that it was ramping up refinancing for loans at a level that was higher than the original amount given. Additionally, there were a number of delinquencies and charge-offs from its loans, which hurt the company's underwriting. Finally, the leaders of the company may have overstated revenue for financial reports for the fiscal year of 2012.
Shareholders have the ability to ask questions to the law office about the case and how it may affect their rights and interests. The best person to discuss these matters with is Darnell Donahue, and he can be reached by telephone or email. Additionally, there is more information available on the law firm's website.
Second lawsuit filed
Another litigation firm noted that it filed a class action claim against Regional Management Corp., for many of the same reasons.
Robbins Geller Rudman and Dowd, LLP, explained that the litigation was filed in the aforementioned court, citing the same issues regarding its stock depreciation and loan issues.
For those who are interested in becoming lead plaintiff in the case, it is important to file all necessary paperwork with the court within 60 days of the litigation being entered. This is not a mandatory action for shareholders, and they will still have the option to take no action and become an absent class member, which will allow them to still collect in the event of a financial return.
For those who want to discuss issues related to the lawsuit, it is also an option to speak with this law firm. Both Samuel Rudman and David Rosenfeld can be reached by email or telephone. The law office's website also has a copy of the complaint.