WASHINGTON, DC (June 20, 2017) — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed against Aaron’s, Inc. (“Aaron’s” or the “Company”) (NYSE:AAN) and certain of its senior executives. The class action is on behalf of investors who purchased or otherwise acquired Aaron’s common stock, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934. The case has been docketed under 17-cv-02270 in United States District Court for the Northern District of Georgia.
If you are a shareholder who purchased Aaron’s common stock between February 6, 2015 and October 29, 2015 (“Class Period”), you have until August 18, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. The Lead Plaintiff is a representative for absent members of the class.
Investors do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action. Contact USMA to discuss this action.
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.
Allegations Against Aaron’s
According to the initial lawsuit 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.
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
David P. Abel