SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of Aaron’s, Inc. (“Aaron’s” or the “Company”) (NYSE: AAN) between March 2, 2018 and February 19, 2020, inclusive (the “Class Period”).
If you purchased or otherwise acquired the securities of Aaron’s during the Class Period, you may move the Court for appointment as lead plaintiff by no later than April 28, 2020. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Aaron’s investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Aaron’s, headquartered in Atlanta, Georgia, operates as a provider of lease-purchase solutions to underserved and credit-challenged customers.
The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose: (1) that Aaron’s had disclosure controls, procedures, and compliance measures which were inadequate; (2) that as a result, the operations of Aaron’s Progressive and AB segments were in violation of the Federal Trade Commission (“FTC”) Act and/or relevant FTC regulations; (3) that, consequently, the Company’s earnings from those segments were derived in part from unlawful and therefore unsustainable business practices; and (4) the full scope of Aaron’s liability regarding the FTC's investigation into its Progressive and AB segments, the Company’s noncompliance with the FTC Act, and the likely negative consequences of all the foregoing on the Company’s financial results.
On July 26, 2018, after markets closed, Aaron’s disclosed that, in July 2018, the Company received civil investigative demands (“CID”) from the FTC requesting Aaron’s produce documents and answers to written questions to determine whether disclosures related to the Company’s financial products offered through its AB and Progressive segments had violated the FTC Act. On this news, the price of Aaron’s stock fell $5.38 per share, or 11.01%, from its closing price of $48.85 on July 16, 2018, to close at $43.47 per share on July 27, 2018, on elevated trading volume.
On February 20, 2020, Aaron’s announced that the Company’s Progressive segment had reached an agreement in principle with FTC staff concerning the CID. Aaron’s revealed that “[u]nder the proposed agreement, which requires final approval by FTC Commissioners and the U.S. District Court for the Northern District of Georgia, Progressive will make a payment of $175 million and enhance certain compliance-related activities, including monitoring, disclosure and reporting requirements.” On this news, the price of Aaron’s stock dropped $10.70 per share, or 19.06%, from its closing price of $55.93 on February 19, 2020, to close at $45.45 per share on February 20, 2020, on extremely heavy trading volume.
The next day, Aaron’s announced a second settlement with the FTC with respect to its anticompetitive activities with competing companies between June 2015 and May 2018 that led to reduced competition and quality and service at the companies’ stores. On this news, the price of Aaron’s stock fell another $2.12 per share, or 4.6%, from its closing price of $45.45 on February 20, 2020, to close at $43.33 on February 21, 2020, on heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
For more information about Lieff Cabraser and the firm’s representation of investors, please visit https://www.lieffcabraser.com/.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
