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San Diego, California and Wichita, Kansas--(Newsfile Corp. - July 10, 2020) - Shareholder rights law firm Robbins LLP reminds investors that it is investigating the officers and directors of CURO Group Holdings, Corp. (NYSE: CURO) for breaches of fiduciary duties, unjust enrichment, and violations of the Securities Exchange Act of 1934. CURO is a diversified consumer finance company, provides consumer finance to a range of underbanked consumers.
If you suffered a loss as a result of CURO's misconduct, click here.
CURO Group Holdings, Corp. (CURO) Faces Liability for Misleading Shareholders About FY 2018 Guidance
According to the class action complaint filed against CURO, although CURO was accelerating its transition away from its most profitable single line of business into the lower yield open-end loans, CURO's executives continued to tout their "confidence" in the Company's 2018 full-year ("FY18") financial guidance. In July 2018, CURO's CEO stated he had a "very high degree of confidence in achieving" full year guidance; however, by this point CURO was experiencing drastically reduced single-pay revenues and higher loan provisions that would prevent CURO from meeting its FY18 guidance. This negative impact was realized on October 24, 2018, when CURO shocked investors with disappointing results for its third quarter, forcing CURO to revise its FY18 guidance to include adjusted net income in the range of $88-$91 million compared to the previous range of $110-$116 million and an adjusted EBITDA in the range of $215-$218 million compared to its previous range of $245-$255 million. On this news, CURO's stock price plummeted $7.69, or almost 34%, to close at $15.18 per share. On December 3, 2019, U.S. District Court Judge John W. Lungstrum denied CURO's motion to dismiss plaintiffs' claims, stating that the facts supported the notion that CURO's executives "were at least reckless in failing to disclose that the decision to accelerate the transition would call into question the accuracy of the 2018 guidance." The Court's denial of CURO's motion to dismiss could result in substantial financial damage to CURO as litigation proceeds.
CURO Group Holdings, Corp. (CURO) Shareholders Have Legal Options
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/59546