Aaron’s Inc. Securities Class Action
Company: Aaron’s Inc. (NYSE:AAN)
Class Period: February 6, 2015 – October 29, 2015
Lead Plaintiff Deadline: August 18, 2017
Court: Northern District of Georgia, No. 17-cv-02270
WASHINGTON, DC (June 20, 2017) — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed on behalf of purchasers of Aaron’s Inc. (NYSE:AAN) common stock between February 6, 2015 and October 29, 2015. The lawsuit seeks to recover damages for Aaron’s investors under the federal securities laws.
Any member of the putative class may move the Court to serve as lead plaintiff through attorneys of their choice, or may choose to do nothing and remain an absent class member. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Aaron’s securities during the relevant period. Members of the class will be represented by the lead plaintiff and attorneys chosen by the lead plaintiff.
If you wish to choose attorneys to represent you and the class, you must apply to be appointed lead plaintiff no later than August 18, 2017. If you wish to join the litigation, complete the contact form below to be contacted by an attorney to discuss your rights or interests regarding this class action. There is no obligation or cost to you.
About the Lawsuit
Aaron’s is a retailer of furniture, consumer electronics, computers, appliances and household accessories that offers flexible payment options for credit challenged individuals. Aaron’s operates as a rent-to-own business, which allows customers to lease property in exchange for a weekly or monthly payment, with the option to purchase at some point during the agreement.
According to the Complaint, throughout the Class Period, Defendants touted to investors the strong revenue and sales growth generated by Progressive Finance Holdings, LLC (“Progressive”), the Company’s most profitable subsidiary. In addition, the Company specifically touted Progressive’s proprietary algorithm, which it used to determine which customers meet the leasing qualifications. These statements, and similar statements issued throughout the Class Period, were materially false and misleading. In truth, Aaron’s statements regarding Progressive were materially false and misleading because software issues related to the Progressive algorithm, including the loss of critical data, undermined Progressive’s ability to determine which customers met the leasing qualifications.
Investors learned the truth regarding Progressive’s data loss on October 30, 2015, when the Company admitted that Progressive had lost two critical data feeds in February. The Company acknowledged that the loss impacted the Company’s ability to make loans and collect payments. Specifically, the loss of data caused the Company to experience “higher bad debt expense and merchandise write offs” and delayed the Company’s “ability to identify and begin collections on certain delinquent accounts.” Aaron’s senior executives admitted that the Company had discovered the data loss in February, nine months before it was disclosed to investors. These disclosures caused Aaron’s stock to decline by approximately $9 per share.