Robbins Arroyo LLP: EZCORP, Inc. (EZPW) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against EZCORP, Inc. (NasdaqGS: EZPW) in the U.S. District Court for the Western District of Texas, Austin Division. The complaint is brought on behalf of all purchasers of EZCORP securities between October 27, 2014 and July 16, 2015, for alleged violations of the Securities Exchange Act of 1934 by EZCORP’s officers and directors. EZCORP provides pawn loans in the United States, Mexico, and Canada.
EZCORP Accused of Issuing Inaccurate Financial Statements
According to the complaint, EZCORP emphasized positive financial results, strong performance, and solid foundation for growth in its public filings and press releases. On April 30, 2015, EZCORP announced that it would delay its earnings release for the second quarter of fiscal 2015 due to an ongoing review of certain elements of its Grupo Finmart loan portfolio. The announcement caused EZCORP’s stock to drop over 8% to close at $8.41 per share on May 1, 2015. Then, on May 20, 2015, EZCORP revealed that management and the Audit Committee would likely conclude that the company had a material weakness in internal control over financial reporting and deficiencies in its disclosure controls and procedures, and that the company had received a deficiency notice from The Nasdaq Stock Market due to its failure to timely file its Form 10-Q. As a result, the company’s stock declined further to close at $8.33 per share on May 21, 2015. On July 17, 2015, EZCORP announced that it would restate its financial statements for fiscal 2014 and the first quarter of fiscal 2015, and that the previously issued financial statements for those periods should no longer be relied upon. On this news, EZCORP’s stock fell $0.26 per share, or nearly 4%, to close at $6.48 per share on July 17, 2015.
EZCORP Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.